MACRS, Section 179, And Bonus Depreciation Practice Test

In 2025, a calendar-year C corporation operating a manufacturing business purchased and placed in service a used machine on May 12, 2025, for $400,000. The machine is qualifying tangible personal property and is eligible for bonus depreciation under Internal Revenue Code Section 168(k) at 60% for 2025, assuming all requirements are met. How is bonus depreciation applied to the asset in the first year (before regular MACRS depreciation)?

In 2025, a partnership operating a manufacturing business purchased and placed in service qualifying equipment on January 2, 2025, for $1,600,000. Total 2025 purchases of Section 179 property were $3,500,000. For 2025, the Section 179 annual limit is $1,250,000 and the phase-out threshold begins at $3,130,000. What is the maximum Section 179 deduction for 2025 (ignoring the taxable income limitation)?