Compute trango expense deduction

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Question - On December 1, 2020, Trango Corporation, which is a calendar year taxpayer, purchased equipment (7-year property) for $2,000,000 and computers and copiers (5-year property) for $1,290,000 for use in its business. Trango elects not to take bonus depreciation on these assets but does elect to take Section 179 expensing and MACRS depreciation instead. These are the only assets purchased by Trango during 2020.

Compute Trango's Section 179 expense deduction and its MACRS depreciation for these assets assuming that any expensing is first used for the 7-year assets and that Trango's taxable income for the year is $5,300,000.

Reference no: EM132819414

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