Steve Edwards Enterprises is a sole proprietorship. It is planning to purchase a signiﬁcant amount of property this year, all of which will be classiﬁed as 5-year property for purposes of MACRS depreciation. It would like to know the diﬀerence in the total ﬁrst- and second-year depreciation deductions resulting from the two cost acquisition patterns outlined below: (Ignore bonus depreciation and the Section 179 deduction.)

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The Answer of Steve Edwards Enterprises is a sole proprietorship. It is planning to purchase a signiﬁcant amount of property this year, all of which will be classiﬁed as 5-year property for purposes of MACRS depreciation. It would like to know the diﬀerence in the total ﬁrst- and second-year depreciation deductions resulting from the two cost acquisition patterns outlined below: (Ignore bonus depreciation and the Section 179 deduction.)

Steve Edwards Enterprises Is a Sole Proprietorship