Reference no: EM131895960

Question - Lori who is a single, purchased five-year class property for $100,000 and seven-year class property for $200,000 on may 20, 2012. Lori expects the taxable income derived from her business (without regard to the amount expensed under code 179) to be $800,000. Lori wants to elect immediate code 179 expensing, but she doesn't know which asset she should expense under code 179. She elects not to take additional first-year depreciation.

A. Determine lori's total deduction if the code 179 expense is first taken with respect to the five-year class asset

B. Determine lori's total deduction if the code 179 eu is first taken with respect to the seven-year class asset

C. What is your advice to lori?