Question
Yeti, Inc. purchased the following property in 2017: Computer $375,000 Purchased on 10/28/2017 Furniture $295,000 Purchased on 6/9/2017 Yeti has taxable income (before taking into
Yeti, Inc. purchased the following property in 2017:
Computer $375,000 Purchased on 10/28/2017 Furniture $295,000 Purchased on 6/9/2017
Yeti has taxable income (before taking into account any 179 expense) of $875,000.
a. Calculate Yetis total depreciation deduction on both assets if the 179 expense is first taken on the computer. b. Calculate Yetis total depreciation deduction on both assets if the 179 expense is first taken on the furniture. c. What is your advice to Yeti regarding the 179 deductions based on your results from a. and b.?
d. What is the depreciation allowed under H.R. 1 if the assets were placed in service in 2018?
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