A buyer and seller can agree to an earlier closing date in the purchase contract, but if the lender can't perform during that time window, it doesn't really matter which date is selected, because it's not going to close on the date the buyer and seller specify. It will close when the lender is ready to close.
Section 179 expense is reported on Schedule K and passed to the partners or shareholders and is not reported in ordinary income. Bonus deprecation is allowed on new assets placed in service in the current tax year and used in the United States with a recovery period of 20 years or less. Certain leasehold improvements, restaurant property, and retail improvement property may also qualify for bonus deprecation. Used assets are not eligible for bonus depreciation. Bonus depreciation is calculated after Section 179 expense is taken and before current year depreciation is calculated.
In the first year, the asset was only used for 7 months. To figure how much depreciation to record for this asset in the first year, you will take the annual depreciation ($120) and times it by a fraction of how many months the asset was used (7 months/out of 12 months).