Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Exercise 27

Betsy acquired a new network system on June 5, 2010 (5-year class property) for $75,000. She expects taxable income from the business will always be about $175,000 without regard to the §179 election. Betsy will elect §179 expensing and the 50% bonus. She also acquired 7-year property in July 2010 for $350,000. Determine Betsy's maximum cost recovery deduction with respect to her purchases in 2010: