A small business has a taxable income of $95,650 this year, and has purchased $118.450 of business equipment for a section 179 deduction. What is the maximum section 179 deduction that can be taken? Taking this deduction, what is the year 1 depreciation for the equipment? What is the end-of-year book value? Use the MACRS rates listed below:
Year 1: 20% Year 2: 32% Year 3: 19.2% Year 4: 11.52% Year 5: 11.52% Year 6: 5.76%
What is the maximum section 179 deduction that can be taken? Taking this deduction, what is the 1 year depreciation for the equipment?