In 2014, Andrew, a calendar-year taxpayer, purchased business

In 2014, Andrew, a calendar-year taxpayer, purchased business equipment (5-yearproperty) for $175,000. The property was placed in service in January 2014 (and isbeing used exclusively in Andrew’s extremely profitable business). No otherpersonal property is purchased by Andrew in 2014. What is the most that Andrewmay deduct in 2014 under Section 179 of the Code (ignore any potential deductionsresulting from bonus deprecation or MACRS)?a. $2,000,000b. $175,000c. $15,000d. $0assumethe same facts as in the previous question. However, for this question, assume thatAndrew purchased the business equipment for $2,200,000 (instead of $175,000).What is the most that may be deducted in 2014 under Section 179 of the Code(ignore any potential deductions resulting from bonus deprecation or MACRS)?a. $2,000,000b. $500,000c. $300,000d. $0