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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
43.  LO.2, 3, 9 Lori, who is single, purchased 5-year class property for $200,000 and 7-year class property for $400,000 on May 20, 2015. Lori expects the taxable income
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derived from her business (without regard to the amount expensed under § 179) to be about $800,000. Lori wants to elect immediate § 179 expensing, but she doesn’t know which asset she should expense under § 179. She does not claim any available additional first-year depreciation.
a.    Determine Lori’s total deduction if the § 179 expense is first taken with respect  to the 5-year class  asset.
b.    Determine Lori’s total deduction if the § 179 expense is first taken with respect  to the 7-year class  asset.
c.    What is your advice to Lori?
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