Question: For Exercise, what was the total deduction for the lab equipment claimed by the research company on its federal income tax form the first year the equipment was purchased?
Exercise: Capital equipment for a marine biological research lab costing $227,800 is placed in service at midyear as a five-year property under the MACRS. A section 179 deduction of $125,000 is taken the first year. What is the first-year depreciation?