Triton Industries acquires $650,000 of 7-year MACRS equipment in March 2022. Tritons tax director understands that there are three ways that Triton can recover the cost of the equipment: (1) expense it (2) bonus depreciation (3) regular depreciation.

REQUIRED:

Complete the following table (12 points)

Tax Year Section 179 expense Bonus Depreciation Regular Depreciation

2022

2023

YOU MUST show the computation of the regular depreciation WITHOUT using the percentage shown in the cost recovery tables. That is, you must show me how the cost recovery deduction is computed step-by-step.