Jhonny corporation a calendar-year


Jhonny Corporation, a calendar-year taxpayer, purchased and placed the following business assets in service.
Asset Date Placed in Service Initial Cost
New computer equipment April 3 $ 50,000
Used office furniture July 14 940,000
Used office fixtures October 29 1,060,000

Jhonny Corporation is also considering the purchase of $450,000 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 depreciation deduction. What impact would this proposed purchase have on Jhonny's depreciation deduction for the year if bonus depreciation is not claimed (if eligible) and the maximum Section 179 expensing limit is (a) $500,000 or (b) $25,000?

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Accounting Basics: Jhonny corporation a calendar-year
Reference No:- TGS0941651

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