Sam the Butcher acquires the following new seven-year class property in 2021. Use $1,050,000 as the maximum §179 amount:

Asset	Acquisition Date	Cost
A	February 10	$508,000
B	August 16	1,200,000
C	December 20	365,000

Required:

1) Sam elects §179 for Asset B only. Sam’s taxable income from the butcher shop would not create a limitation for purposes of the § 179 deduction. Sam elects not to take the additional first-year depreciation?

2) State the convention (half-year or mid-quarter) that will be used when calculating the depreciation and show the calculation as to why that convention should be used?

Answer rating: 100% (QA)

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