Problem 6-42 (LO 6-3)

Betsy acquired a new network system on June 5, 2020 (five-year class property), for $66,000. She expects taxable income from the business will always be about $200,000 without regard to the 179 election. Betsy will elect 179 expensing. She also acquired seven-year property in July 2020 for $400,000. (Use Table 6A-1)

Required:

Determine Betsys maximum cost recovery deduction with respect to her purchases in 2020: