Question: Rex's Wrecks purchased $ 1 , 2 5 1 , 0 0 0 in new equipment during 2 0 2 3 . Rex wants to

Rex's Wrecks purchased $1,251,000 in new equipment during 2023. Rex wants to use Section 179 to expense the maximum amount of the purchase. If Rex is not using bonus depreciation, how much will Rex get to expense under Section 179 and what will be the adjusted basis of the assets for calculating MACRS depreciation expense?
The answer is Section 179-$1,160,000; adjusted basis subject to MACRS-$11,000. Please explain how adjusted basis subject to MACRS ended up at $11,000.

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