Question

Phillis Wheatley purchased a drill press (three-year personalty) on May 25, 2019, at a cost of $2,560,000. Phillis Wheatley does not take first-year depreciation but does take Section 179 expense. Determine the cost recovery deduction for 2019

Answer 1

Particulars		Amount	Amount
Limit available			1,020,000
Phase out:
Assets placed in service		2,560,000
Less threshold		2,550,000
Phase out			10,000
179 election available			1,010,000

Nature of depreciation	Amount
Section 179 expense	$ 1,010,000.00
Bonus depreciation	$                   -
MACRS depreciation	$    516,615.00
Total depreciation	$ 1,526,615.00

Answer is:

1,526,615

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