Subject: Separate Class Election

In January 2020, Edverness Inc. acquires 10 photocopiers at a cost of $20,000 each. In December 2020, two of these photocopiers are traded in on faster machines with more features. The new photocopiers cost $22,000 each, and the company receives a trade-in allowance for each old machine of $3,000. Indicate the amount(s) that would be deducted from 2020 business income if no election is made to put each photocopier in a separate class. Contrast this with the deduction(s) that would be available in the separate class election is used.