Eva Purchased Office Equipment (7-Year Property)for Use in Her Business

Essay

Eva purchased office equipment (7-year property)for use in her business.She paid $12,600 for the equipment on July 1,2017.Eva did not purchase any other property during the year.For 2017,her business had net income of $6,000,before depreciation and before considering the election to expense.Eva elects out of bonus depreciation.
a.What is the maximum amount that Eva can elect to expense in 2017 under Section 179?
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What is the total depreciation (regular depreciation and the amount allowed as a 2017 deduction under the election to expense)on the office equipment for 2017,assuming Eva uses the accelerated method under MACRS and claims the maximum amount allowable under the election to expense?
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Assuming that Eva elected to expense the equipment in 2017 and that her business has net income in 2018 of $200,000,before depreciation and before considering the election to expense,what is Eva's total depreciation deduction (regular depreciation and the amount allowed under the election to expense)for the equipment for 2018?