Szabi Inc., a calendar year taxpayer, purchased two assets during 2020: a machine costing $680,000 and computer equipment costing $553,500. The machine is 7-year recovery property and the computer equipment is 5-year recovery property. Which of the following statements is true?
1.Under Section 179, Szabi should elect to expense the $680,000 cost of the machine and $360,000 of the cost of the computer equipment.
2.Under Section 179, Szabi should elect to expense the $553,500 cost of the computer equipment machine and $486,500 of the cost of the machine.
3.Under Section 179, Szabi must elect to expense $520,000 of the cost of the machine and $520,000 of the cost of the computer equipment.
4.Under Section 179, Szabi is indifferent as to which costs to expense
