Reference no: EM132181068

Question - Expensing and MACRS Depreciation: Turner Corporation uses the calendar year as its tax year. It purchases and places into service $1.97 million of property during 2018 to use in its business:

	Placed into service	Cost	Recovery Period
Apartment building*	May 1	$900,000	27.5 years
Office furniture	June 23	$650,000	7 years
Office machinery	October 15	$420,000	5 years
* $80,000 of the cost pertains to the land on which the apartment building is located.

What is Turner's total depreciation deduction for 2018 in each of the following circumstances? Assume that Turner elects out of bonus depreciation.

a. Turner does not claim Sec. 179 expensing.

b. Turner claims Sec. 179 expensing for $650,000 of the office furniture's cost and $350,000 of the office machinery's cost.

c. Turner claims Sec. 179 expensing for $580,000 of the office furniture's cost and $420,000 of the office machinery's cost.