Lori, who is single, purchased 5-year class property for $200,000 and 7-year class property for $420,000 on May 20, 2018. Lori expects the taxable income derived from her business (without regard to the amount expensed under 179) to be about $550,000. Lori has determined that she should elect immediate 179 expensing in the amount of $520,000, but she doesn't know which asset she should completely expense under 179. She does not claim any available additional first-year depreciation.

If an amount is zero, enter "O a. Determine Lori's total cost recovery deduction if the 179 expense is first taken with respect to the 5-year class asset. 5-year class property Immediate expense deduction under 5 179 200,000 Regular MACRS 0 7-year class property Immediate expense deduction under 179 Regular MACRS Total deduction Feedback b. Determine Lon's total cost recovery deduction if the 179 expense is first taken with respect to the 7-year class asset. 7-year class property Immediate expense deduction under 179 Regular MACRS 0 5-year class property Immediate expense deduction under S 179 Regular MACRS Total deduction