Task:
Please show the breakdown of how to approach this problem.
Secs. 1245 and 1231. The LaPoint Corporation placed in service $350,000 of equipment (7-year recovery property) on June 3, 2008 and elected to expense $250,000 as Sec. 179 expense. LaPont sold the equipment for $150,000 on November 22, 2009.
Determine the following:
a. Depreciation allowed in 2008 if the corporation wants to maximize total deductions.
b. Depreciation allowed during 2009.
c. Amount of gain or loss and character.