Goodrich Corporation uses the calendar year as its tax year. It acquires and places into service two

Question:

Goodrich Corporation uses the calendar year as its tax year. It acquires and places into service two depreciable assets during 2017:

• 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.

a. What is Goodrich’s depreciation deduction for 2017 and 2018 if it does not elect Sec. 179 and elects out of bonus depreciation for the assets?

b. What is Goodrich’s depreciation deduction for 2017 and 2018 if it elects Sec. 179 and does not elect out of bonus depreciation for the assets?

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...