Robert is a sole proprietor who uses the calendar year as his tax year. On July 20, 2013 he acquired and placed in service a business machine, a 7-year asset, for $50,000. No other property was acquired in 2013.
a. What is the amount of depreciation allowed in 2013 and 2014 if neither bonus depreciation nor Sec. 179 depreciation (first-year expense election) was elected?
b. What is the amount of depreciation allowed in 2013 and 2014 if bonus depreciation was taken but not Sec. 179?
c. What is the amount of depreciation allowed in 2013 and 2014 if Sec. 179 was elected?