Problem 8-13 Modified Accelerated Cost Recovery System (MACRS), Llection to Expense ( LO.8.2, 8.3) Tom has a successtul business with $100,000 of taxable income before the electicn to expense in 2021. He purchoses one new asset in 2021 , a new machine which is 7-year MACRS property and costs $25,000. You are Tom's tax advisar. Complete the mernorandum regarding the options you would advise for Tom and the trestment of this machine for tax purposes in 2021. Click here to access the depreciation table. If required, round your final answers to the nearest dollar. Fsuchaik T prackhr Wors Under 5 ection 179 , taxpayers may elect to expense the acquisition cost of certain praperty, subject to certain limitations. This cost would otherwise have been deducted over a period of time using the regular cost recorery depreciation rules. The Sectica 179 deduction appiles to both new and used property. The three limitations on the expensing election are: (1) a maximum on the annual amount expensed, (2) a phase-dut of the annaal amaut limic; and (3). the taxable income limit