Walt purchased a computer for $6,600. He could use the computer exclusively for his business, or he could allow his family to use the computer 60% of the time and 40% would be for business use. Assume that Walt would not elect 179 expensing or 50% bonus, and that he is in the 25% tax bracket. (Use Table 6A-1 and Table 6-2)

a. Determine the tax deduction for the year of acquisition under both alternatives.

b. What is the overall tax savings between the two alternatives?