On June 26, 2016, Elaine purchased and placed into service a new computer system costing $8,000. The computer system was used 80 percent for business and 20 percent for personal use in both 2016 and 2017 and Elaine claimed only regular MACRS depreciation. In 2018, the computer system was used 45 percent for business and 55 percent for personal use.
a. Compute the depreciation deduction for the computer system in 2018 and the cost recovery recapture.
b. Assume that Elaine had instead expensed the cost of the computer system under Section 179 in 2016. Compute the cost recovery recapture in 2018.