Question - Herald Corporation, a calendar-year taxpayer, purchased and placed the following business assets in service during 2011:
Asset Date placed in service Initial Cost
New Computer equipment April 3, 2011 50,000.00
Used office furniture July 14, 2011 940,000.00
Used office fixtures October 29, 2011 1,060,000.00
Herald Corporation is also considering the purchase of $400.000 of additional office furniture. It could wait until January to make the purchase, or it could buy the furniture and place it in service in December to try to increase its current year tax deprecation deduction. What impact would this proposed purchase have on Herald's depreciation deduction for its year ending December 31, 2011 if the additional office furniture is (a) new or (b) used?