Steve Edwards Enterprises is a sole proprietorship. It is planning to purchase a significant amount of property this year, all of which will be classified as 5-year property for purposes of MACRS depreciation. It would like to know the difference in the total first- and second-year depreciation deductions resulting from the two cost acquisition patterns outlined below:

(Ignore bonus depreciation and Section 179.)

Property Acquisition Dates		Plan A		Plan B
1/28		$250,000		$ 75,000
5/15		120,000		250,000
10/6		180,000		225,000
		$550,000		$550,000