In March 2018, Helen Carlon acquired used equipment for her business at a cost of $300,000. The equipment is five-year property for regular tax depreciation purposes.
a. If Helen depreciates the equipment using the method that will produce the greatest deduction for 2018 for regular income tax purposes, what is the amount of the AMT adjustment?
b. Draft a letter to Helen regarding the choice of depreciation methods. Helen's address is 500 Monticello Avenue, Glendale, AZ 85306.