Woburn Corporation uses the calendar year as its tax year. Woburn purchases and places into service $850,000

Question:

Woburn Corporation uses the calendar year as its tax year. Woburn purchases and places into service $850,000 of depreciable property during 2017:

_________________________ Cost Recovery _________Period

January 20 ……………………..$400,000 …………........7 years

August 2 ………………………...$150,000 ………….......7 years

November 15 ………………….$300,000 ………….......5 years

You are working in Woburn’s tax department and are trying to decide how to make the Sec. 179 election so as to maximize Woburn’s 2017 depreciation deduction. What tax issues should you consider for this decision?

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...