The redwood company, a calendar year corporation, acquired the following new properties,

Item

Copier - $4,000 - date acquired March 1 2015

Furniture $42,000 - June 1 2015

Equipment $160,000 - June 30 2015

Warehouse $110,250 - July 9 2015

A. Compute maxium depreciation deduction that Redwood can take in 2015 and 2016 on each of these properties assuming section 179 is not elected.

B. Assume that Redwood elects to take the maximum allowed Section 179 expense on the equipment on June 30, 2015. The company uses regular MACRS to depreciate the rest of the cost. Redwood's taxable income before Section 179 expense (but after all other expenses, including depreciation) is $950,000. Compute the maxium total depreciation deduction for the equipment for 2015 and 2016.

C. Same facts as Part b. except that Redwood elects Section 179 expense first on the copier, then the furniture, and finally the equipment. Compute Redwood's maximum total depreciation deduction for the furniture for 2015 and 2016.