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Question 2 (14 Points) Dubnyk Corporation, a calendar year, accrual method C-corporation, purchased and placed in service the following new assets on the following dates:

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Question 2 (14 Points) Dubnyk Corporation, a calendar year, accrual method C-corporation, purchased and placed in service the following new assets on the following dates: Date 3/20/2017 5/5/2017 9/14/2017 Asset Computers Copiers Office furniture Cost S500,000 $300,000 $1,400,000 Dubnyk Corporation purchased no other assets during 2017 and its net income for 2017 is $4,000,000 before taking cost recovery deductions into account a. What is the maximum federal cost recovery deduction Dubnyk Corporation may take in 2017? Please show your work and explain your calculations. (6 points) b. What is the federal cost recovery deduction Dubnyk Corporation may take in 2018 on the office furniture asset? (You do not need to calculate the federal cost recovery deduction on the computer or copier assets in 2018). Please show your work and explain your calculations. (2 points)

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