Walt purchased electronic equipment (five-year property) for $5,000, He could use the electronic equipment exclusively for his business, or he could allow his famity to use the electronic equipment 60% of the time and 40% would be for business use. Assume that Walt would not elect $179 expensing or 100% bonus, and that he is in the 24% tax bracket (Use Table 6.A-1) Required: a. Determine the tax deduction for the year of acquisition under both alternatives for the business use portion. b. What is the overall tax savings between the two alternatives? TABLE 6 A-1 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line \begin{tabular}{|c|c|c|c|c|c|c|} \hline & & & Conventi & & & \\ \hline Recovery Year & 3-Year & 5-Year & 7-Year & 10-Year & 15-Year & 20-Year \\ \hline 1 & 3333 & 20.00 & 14.29 & 1000 & 5.00 & 3.750 \\ \hline 2 & 44.45 & 32.00 & 24.49 & 18.00 & 950 & 7.219 \\ \hline 3 & 14.81 & 19.20 & 1749 & 14.40 & 8.55 & 6.677 \\ \hline 4 & 7.41 & 11.52 & 12.49 & 1152 & 7.70 & 6.177 \\ \hline 5 & wist & 11.52 & 8.93 & 9.22 & 6.93 & 5.713 \\ \hline 6 & & 5.76 & 8.92 & 737 & 6.23 & 5.285 \\ \hline 7 & & & 8.93 & 6.55 & 5.90 & 4.888 \\ \hline 8 & & & 4.46 & 6.55 & 5.90 & 4.522 \\ \hline 9 & & & & 6.56 & 591 & 4.462 \\ \hline 10 & & & IIII & 655 & 590 & 4.461 \\ \hline 11 & & & III & 328 & 5.91 & 4.462 \\ \hline 12 & & & Iit1 & & 590 & 4.461 \\ \hline 13 & & & & mitis & 5.91 & 4462 \\ \hline 14 & & & 7 & & 5.90 & 4.461 \\ \hline 15 & & & IIII & & 5.91 & 4.462 \\ \hline 16 & & & & tifte & 295 & 4.461 \\ \hline 17 & & 7 & & & & 4.462 \\ \hline 18 & & & & & E8 & 4.461 \\ \hline 19 & & 7 & & & & 4.462 \\ \hline 20 & & -1 & IIIII & & E & 4.461 \\ \hline 21 & & & Bifl & AI & Difitit & 2231 \\ \hline \end{tabular} - May not be used for farm business property generally placed in service after 1988. See Table 14, Rev. Proc. 8757,19872 CB 687