Reid Acquired Two Assets in 2016: Computer Equipment (5-Year Property)

Short Answer

Reid acquired two assets in 2016: computer equipment (5-year property) acquired on August 6^th with a basis of $500,000 and machinery (7-year property) on November 9^th with a basis of $500,000. Assume that Reid has sufficient income to avoid any limitations. Calculate the maximum depreciation expense including §179 expensing (but not bonus expensing). Assume the 2015 §179 limits are identical to 2016.