Section 7-DEPRECIATION UNDER FEDERAL INCOME TAX DEPRECIATION RULES Table 1: Half-Year Convention 200% Declining Balance Year 3 Year 5 Year 7 Year 1 33.33% 20.00% 14.29% 2 44.45% 32.00% 24.49% 3 14.81% 19.20% 17.49% 4 7.41% 11.52% 12.49% 5 11.52% 8.93% 6 7 8 5.76% 8.92% 8.93% 4.46% 1. Below are four asset purchases made in 2018. Asset Cost Date Office Table $1,000 January 1 Office Desk 1,500 September 29 File Cabinet 2,000 October 15 Computer 6,000 December 31 What is the maximum 2018 Sec. 179 deduction for these purchases? a. $10,500 b. $2,500 C. $8,000 SO 2. d. On May 11, 2018, your calendar year firm pays $6,000 for a computer server, its only asset purchase for the year, and estimates that the server will have a salvage value of $500. If no Sec. 179 deduction is taken and you elect out of 100% bonus, what is your firm's maximum 2018 deduction for depreciation? a. $2,000 b. $1,200 c. $1,100 d. $869