Lori who is single purchased five-year class property for

Reference no: EM13599222

Lori, who is single, purchased five-year class property for $150,000 and seven-year class property for $400,000 on May 20, 2011. Lori expects the taxable income derived from her business (without regard to the amount expensed under § 179) to be about $800,000. Lori wants to elect immediate § 179 expensing, but she doesn't know which asset she should expense under § 179. She elects not to take additional first-year depreciation

a. Determine Lori's total deduction if the § 179 expense is first taken with respect to the five-year class asset.

b. Determine Lori's total deduction if the § 179 expense is first taken with respect to the seven-year class asset.

c. What is your advice to Lori?

Reference no: EM13599222

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