Roberta, a sole proprietor who uses the calendar year as her tax year, acquires and places in service two business machines during 2013. Machine C, a 7-year asset, was acquired on January 20, 2013, for $570,000 and Machine D, a 5-year asset, was acquired on August 1, 2013, for $50,000. No other property was acquired in 2013.
a. What is the amount of depreciation allowed in 2013 if Sec. 179 or bonus depreciation is not elected?
b. What is the amount of depreciation allowed in 2013 if Sec. 179 is elected but not bonus depreciation?