Lori, who is single purchased a new copier five-year class property for $50,000 as well as new furniture seven-year class property for $275,000 on May 20, 2010. Lori imagines the taxable income derived from her business without respect to the amount expensed under $179 to be about $400,000. Lori needs to elect immediate $179 expensing however she doesn't know which asset she should expense under $179. If Congress re-enacts additional first-year depreciation for 2010 she elects not to take supplementary first-year depreciation.
a) Define Lori's total deduction if the $179 expense is first taken with respect to the copier.
b) Define Lori's total deduction if the $179 expense is first taken with respect to the furniture.
c) Explain what is your advice to Lori?