Not sure how to do part d & e

Lori, who is single, purchased 5-year class property for $200,000 and 7-year class property for $420,000 on May 20, 2019. Lori expects the taxable income derived from her business (without regard to the amount expensed under $ 179) to be about $550,000. Lori has determined that she should elect immediate $ 179 expensing in the amount of $520,000, but she doesn't know which asset she should completely expense under $ 179. She does not claim any available additional first-year depreciation. Click here to access Exhibit 8.1 and the depreciation table to use for this problem. If an amount is zero, enter "0". a. Determine Lori's total cost recovery deduction if the $ 179 expense is first taken with respect to the 5-year class asset. 5-year class property Immediate expense deduction under $ 179 200,000 Regular MACRS 0 7-year class property Immediate expense deduction under $ 179 $ 320,000 Regular MACRS 14,290 Total deduction 534,290 b. Determine Lori's total cost recovery deduction if the $ 179 expense is first taken with respect to the 7-year class asset. 7-year class property Immediate expense deduction under $ 179 $ 420,000 Regular MACRS 0 5-year class property Immediate expense deduction under $ 179 $ 100,000 Regular MACRS 20,000 Total deduction $ 540,000 Feedback C. What is your advice to Lori? the cost recovery deduction for the year would be $ 5,710 If $ 179 expense is first allocated to the seven-year larger d. Determine the present value of the tax savings from the cost recovery deductions for both assets, assuming that Lori is in the 24% marginal tax state and Federal income bracket and that she elects $ 179 for the 7-year asset. Assume MACRS depreciation and a 6% discount rate with the following present value factors: Year Year Factor 2019 2023 0.7921 2020 Factor 1.000 0.9434 0.8900 0.8396 0.7473 2021 2024 2025 2026 0.7050 0.6651 2022 Round all computations to the nearest dollar. The present value of the tax savings from the cost recovery deductions for both assets $ Feedback e. Assume the same facts as in part (d), except that Lori decides not to use 179 on either asset. Determine the present value of the tax savings under this choice. In addition, determine which option Lori should choose. The present value of the tax savings under this choice is $ Lori should elect to expense the 7-year asset. Lori, who is single, purchased 5-year class property for $200,000 and 7-year class property for $420,000 on May 20, 2019. Lori expects the taxable income derived from her business (without regard to the amount expensed under $ 179) to be about $550,000. Lori has determined that she should elect immediate $ 179 expensing in the amount of $520,000, but she doesn't know which asset she should completely expense under $ 179. She does not claim any available additional first-year depreciation. Click here to access Exhibit 8.1 and the depreciation table to use for this problem. If an amount is zero, enter "0". a. Determine Lori's total cost recovery deduction if the $ 179 expense is first taken with respect to the 5-year class asset. 5-year class property Immediate expense deduction under $ 179 200,000 Regular MACRS 0 7-year class property Immediate expense deduction under $ 179 $ 320,000 Regular MACRS 14,290 Total deduction 534,290 b. Determine Lori's total cost recovery deduction if the $ 179 expense is first taken with respect to the 7-year class asset. 7-year class property Immediate expense deduction under $ 179 $ 420,000 Regular MACRS 0 5-year class property Immediate expense deduction under $ 179 $ 100,000 Regular MACRS 20,000 Total deduction $ 540,000 Feedback C. What is your advice to Lori? the cost recovery deduction for the year would be $ 5,710 If $ 179 expense is first allocated to the seven-year larger d. Determine the present value of the tax savings from the cost recovery deductions for both assets, assuming that Lori is in the 24% marginal tax state and Federal income bracket and that she elects $ 179 for the 7-year asset. Assume MACRS depreciation and a 6% discount rate with the following present value factors: Year Year Factor 2019 2023 0.7921 2020 Factor 1.000 0.9434 0.8900 0.8396 0.7473 2021 2024 2025 2026 0.7050 0.6651 2022 Round all computations to the nearest dollar. The present value of the tax savings from the cost recovery deductions for both assets $ Feedback e. Assume the same facts as in part (d), except that Lori decides not to use 179 on either asset. Determine the present value of the tax savings under this choice. In addition, determine which option Lori should choose. The present value of the tax savings under this choice is $ Lori should elect to expense the 7-year asset