Goodrich Corporation uses the calendar year as its tax year. It acquires and places into service two depreciable assets during 2022:
• Asset #1: 7-year property; $950,000 cost; placed into service on January 20.
• Asset #2: 5-year property; $400,000 cost; placed into service on August 1.
What are Goodrich’s depreciation deductions for 2022 and 2023 in each of the following situations if this is the only property it places into service in those years?
a. Goodrich does not elect Sec. 179 expensing and elects out of bonus depreciation for the machine.
b. Goodrich elects Sec. 179 expensing for the assets and does not elect out of bonus depreciation.
c. Goodrich does not elect Sec. 179 expensing and does not elect out of bonus depreciation.