Rograin Corporation purchases turning lathes costing $1,033,000 and a bus fleet costing $975,000 in June of the

Question:

Rograin purchases turning lathes costing $1,033,000 and a bus fleet costing $975,000 in June of the current year. The lathes are 7-year MACRS property, and the bus is 5-year MACRS property. Rograin does not want to claim bonus depreciation.
a. What is Rograin's maximum Section 179 deduction?
b. Assuming that Rograin deducts the maximum Section 179 expense, what are the depreciable basis of the lathes and the bus fleet?
c. If Rograin wants to maximize its cost recovery this year, how much first-year depreciation may it deduct in addition to the Section 179 deduction?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...