[nib]

hello ,

in this calculation , as per my calculation , for 2016 year ,base to calculate 2016 depreciation = 161000-52200 = 108800 * 32% depreciation= 34,816

but for my surprise , 2016 base to calculate depreciation =161000-25000 = 136000 .*32 % = 43520 .

On February 1, 2015, Pam Baker purchased a $161,000 machine (5-year property) for use in her business. Pam expensed $25,000 under Section 179 in addition to the regular depreciation of 20% in 2015 and 32% in 2016. Pam’s total deductions for 2015 and 2016 for the machine are:

ans= $52,200 (2015) and $43,520 (2016).

explanation =

Pam’s 2015 deduction is:

Section 179 $25,000

20% x ($161,000 – $25,000) 27,200

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$52,200

Pam’s 2016 deduction is:

32% x ($161,000 – $25,000) = $43,520