Reid Acquired Two Assets in 2020: on August 6thhe Acquired

Essay

Reid acquired two assets in 2020: on August 6thhe acquired computer equipment (five-year property)with a basis of $1,040,000 andon November 9th he acquired machinery (seven-year property)with a basis of $1,040,000. Assume that Reid has sufficient income to avoid any limitations. Calculate the maximum depreciation deduction, including §179 expensing (but not bonus depreciation). (Use MACRS Table 1, Table 2.)