QUESTION $5$

BOBBY MADE A SIGNIFICANT INVESTMENT IN A NEW PIECE OF INDUSTRIAL EQUIPMENT $(7-$YEAR PROPERTY$)$ DURING THE YEAR. THE CAPITALIZED COST OF THE EQUIPMENT WAS $$2\mathrm{.}85$ MILLION. HE DID NOT PLACE ANY OTHER ASSETS INTO SERVICE DURING THE YEAR. HIS BUSINESS INCOME BEFORE ANY $ $179$ DEPRECIATION WAS $$2$ MILLION. ASSUMING THE HALF$-$YEAR CONVENTION APPLIES, WHAT WOULD HIS DEPRECIATION DEDUCTION USING ONLY SEC. $179($INCLUDE ANY ADDITIONAL MACRS DEPRECIATION, IF APPLICABLE$)?$ WHAT WOULD BE HIS DEPRECIATION DEDUCTION USING ONLY FIRST$-$YEAR BONUS DEPRECIATION? $[$USE THE TABLES PROVIDED IN BLACKBOARD$]$

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