Part I: Kaytlan purchased and placed in service a new $2,870,000 five-year class asset on October 1, 2019. Assume this was the only asset purchased in 2019. Kaytlan elected to take the maximum Section 179 expense deduction allowed but elected NOT to take additional first-year (bonus) depreciation. Kaytlans taxable income for 2019 before the cost recovery on this asset was $600,000.

3. What is the amount of Kaytlans depreciable basis (fixed, constant total we have left to depreciate after we have subtracted 179, the amount we will use each year to go to the MACRS tables)?

4. What is the amount of MACRS depreciation Kaytlan can take in 2019?

5. What is the total depreciation deduction, including Section 179, per Form 4562 Line 22, for 2019?