Burbank Corporation (calendar-year end) acquired the following property this year:

Burbank acquired the copier in a nontaxable transaction when the shareholder contributed the copier to the business in exchange for stock.

a) Assuming no bonus or §179 expense, what is Burbank’s maximum cost recovery for this year?

b) Assuming Burbank would like to maximize its cost recovery by electing bonus and §179 expense, which assets should Burbank immediately expense?

c) What is Burbank’s maximum cost recovery this year assuming it elects §179 expense and bonus depreciation?

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Placed in Basis Asset Service Used Copier November 12 $7,800 14,000 32,000 19,000 70,000 $142,800 New Computer Equipment June 6 July 15 October 28 Furniture New Delivery Truck Luxury Auto Total January 31