Lori, who is single, purchased a new copier (five-year class property) for $50,000 and new furniture (seven-year class property) for $275,000 on May 20, 2010. Lori expects the taxable income derived from her business(without regard to the amount expensed under 179) to be about $400,000. Lori wants to elect immediate section 179. If congress reenacts additioanal first-year depreciation for 2010, she elects not to take additional first-year depreciation.
a. Determine Lori's total deduction if the section 179 expense is first taken with respect to the copier.
b. Determine Lori's total deduction if the section 179 expense is first taken with respect to the furniture.
c. What is your advaice to Lori?