Question: 1. Jones' Automotive purchased equipment for $195,000 and takes the maximum section 179 deduction. What is the first year's depreciation on the 7-year property if the property is placed in service in July 2011?
2. Find the third-year depreciation using MACRS for a fleet of taxis (5-year property) that is purchased and placed in service at midyear. The price of the fleet is $154,971 and the maximum $125,000 section 179 deduction was elected when the fleet was placed in service.