Question
Section 179. In May 2019, Riddick Enterprises placed in service new 7 year property costing $1,100,000 and new 5 year property costing $1,100,000. These are
Section 179. In May 2019, Riddick Enterprises placed in service new 7 year property costing $1,100,000 and new 5 year property costing $1,100,000. These are the only two properties Riddick placed in service during the year. Riddick elects out of bonus depreciation.
a. Compute Riddick's total depreciation expense deduction assuming Riddick uses regular MACRS and elects to take the maximum Section 179 expense on the 5 year property.
b. Compute Riddick's total depreciation expense deduction assuming Riddick uses regular MACRS and elects to take the maximum Section 179 expense on the 7 year property.
c. Which choice results int he largest total depreciation deduction? Comment on your answer to Parts a. and b.
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