GAAP does not consider Section 179 or MACRS acceptable depreciation methods for financial reporting purposes, so you should use separate depreciation methods for the financial reporting of the asset.

You can book the equipment as you normally would, and then use a preferred depreciation method for financial reporting of the asset. Please see the http://business-accounting-guides.com/property-depreciation/ page for more info.

For manufacturing equipment, depreciation can be debited to work in process inventory (inventory) and credited to accumulated depreciation for the equipment. When the products are completed, the costs are transferred to finished goods, and eventually to COGS when shipped (debiting COGS, crediting inventory).

Kenneth