Required information

Burbank Corporation (calendar year-end) acquired the following property this year: (Use MACRS Table 1, Table 2 and Exhibit 10-10.)

Asset	Placed in Service	Basis
Used copier	November 12	$ 12,600
New computer equipment	June 6	18,800
Furniture	July 15	36,800
New delivery truck	October 28	23,800
Luxury auto	January 31	74,800
Total		$ 166,800

Burbank acquired the copier in a tax-deferred transaction when the shareholder contributed the copier to the business in exchange for stock. (Round your answer to the nearest whole dollar amount.)

c. What is Burbanks maximum cost recovery deduction this year assuming it elects 179 expense and claims bonus depreciation?

EXHIBIT 10-10 Automobile Depreciation Limits

Recovery Year Year Placed in Service 2021* 2020 2019 2018 1 10,100** 10,100** 10,100** 10,000** 2 16,100 16,100 16,100 16,000 3 9,700 9,700 9,700 9,600 4 and after 5,760 5,760 5,760 5,760

*As of press date, the IRS had not released the 2021 limitations for automobiles, so throughout the chapter we use the same limitations as in 2020 for 2021.

**$8,000 additional depreciation is allowed when bonus depreciation is claimed [168(k)(2)(F)].