Lanyard purchased office equipment (7-year property)for use in his business.He paid $100,000 for the equipment on July 1, 2018.Lanyard did not purchase any other property during the year.For 2018, his business had net income of $350,000, before depreciation on the office equipment and before considering the election to expense.
a.What is the maximum amount that Lanyard can deduct in 2018 under the election to expense?
b.What is the total depreciation (regular depreciation and the amount allowed under the election to expense) on the office equipment for 2018, assuming Lanyard uses the accelerated method under MACRS and claims the maximum amount allowable under the election to expense?
c.What is Lanyard's total depreciation deduction for 2019 on the 2018 purchase of equipment?

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The Answer of Lanyard purchased office equipment (7-year property)for use in his business.He paid $100,000 for the equipment on July 1, 2018.Lanyard did not purchase any other property during the year.For 2018, his business had net income of $350,000, before depreciation on the office equipment and before considering the election to expense.
a.What is the maximum amount that Lanyard can deduct in 2018 under the election to expense?
b.What is the total depreciation (regular depreciation and the amount allowed under the election to expense) on the office equipment for 2018, assuming Lanyard uses the accelerated method under MACRS and claims the maximum amount allowable under the election to expense?
c.What is Lanyard's total depreciation deduction for 2019 on the 2018 purchase of equipment?

Lanyard Purchased Office Equipment (7-Year Property)for Use in His Business