Answer: $35,717,50
Explanation:
Property basis = $100,000
Section 179 expense for current year = $25,000
1st year Depreciation rate = 14.29%
Adjusted basis = property basis - section 179 expense
Adjusted basis = $(100,000 - 25,000) = $75,000
Adjusted basis × Depreciation rate
$75,000 × 14.29%
$75,000 × 0.1429 = $10,717.50
Maximum allowable Depreciation ;
$(25,000 + 10,717.50) = $35,717.50
