Woolard Inc. has taxable income in 2014of $150,000 before any depreciation deductions (§179, bonus, or MACRS) and acquired the following assets during the year:
Asset ............................. Placed in Service .......... Basis
Office furniture (used) .......... March 20 ................... $600,000
a. If Woolard elects $50,000 of §179, what is Woolard's total depreciation deduction for the year (assume that the 2013 §179 limits are extended to 2014)?
b. If Woolard elects the maximum amount of §179 for the year, what is the amount of deductible §179 expense for the year? What is the total depreciation expense that Woolard may deduct in 2014? What is Woolard's §179 carryforward to next year, if any (assume that the 2013 §179 limits are extended to 2014)?
c. Woolard is concerned about future limitations on its §179 expense. How much §179 expense should Woolard expense this year if it wants to maximize its depreciation this year and to avoid any carryover to future years (assume that the 2013 §179 limits are extended to 2014)?