Loni Company paid $1,037,000 for tangible personalty in 2019 and elected to expense $1,020,000 of the cost (the limited dollar amount for 2019). Lonis taxable income before a Section 179 deduction was $894,100. Loni paid $23,700 for tangible personalty in 2020 and elected to expense the entire cost. Lonis taxable income before a Section 179 deduction was $228,000. Use Table 7-2.

Required:

1. Compute Lonis Section 179 deduction and taxable income for 2019.
2. Compute Lonis Section 179 deduction and taxable income for 2020.

Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Year Depreciation Rate 33.33% 44.45 14.81 7.41 20.00% 32.00 19.20 11.52 11.52 5.76 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 10.00% 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 3.28 5.00% 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 3.750% 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231