How much depreciation will be taken on the equipment

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Reference no: EM131317828

A taxpayer placed 7-year property in service in April 2016. This equipment cost $2,800,000.

The taxpayer elects to take the maximum expense allowed under Section 179.

This is the only asset purchased in 2016.

What is the amount of the 179 deduction on the equipment?  

What is the basis for MACRS depreciation of the equipment in 2016?  

How much depreciation will be taken on the equipment in 2016?  

How much depreciation will be taken on the equipment in 2017?  

DO NOT CONSIDER BONUS DEPRECIATION

-Income Tax

Reference no: EM131317828

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