In 2017, Wabash Corporation purchases two assets and places them into service (both are used property and

Question:

In 2017, Wabash Corporation purchases two assets and places them into service (both are used property and have a 7-year MACRS recovery period):

• Asset #1: $1,300,000 cost; placed in service in February.

• Asset #2: $600,000 cost; placed in service in November.

Wabash elects $510,000 under Sec. 179. Compute Wabash’s total depreciation deduction for 2017 under each of the following assumptions:

a. Wabash elects the $510,000 for Asset #1.

b. Wabash elects the $510,000 for Asset #2.

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...