Woolard Inc. has taxable income in 2015 of $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 bonus depreciation and 2014 §179 limits are extended to 2015)?
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 2015? What is Woolard's §179 carryforward amount to next year, if any (assume that bonus depreciation and 2014 §179 limits are extended to 2015)?
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 avoid any carryover to future years (assume that bonus depreciation and 2014 §179 limits are extended to 2015)?