The corporation's section 179 depreciation is not appearing on the 1120S return of the Corporation. This is because the Section 179 depreciation is not deducted on the Corporation's 1120S return. It is passed through to the shareholders, K-1.
Per IRS Instructions for 1120S, Line 14. Depreciation:
Don't include any section 179 expense deduction on this line. This amount isn't deducted by the corporation. Instead, it is passed through to the shareholders in box 11 of Schedule K-1. However, reduce the basis of any asset of the S corporation by the amount of section 179 expense elected by the S corporation, even if a portion of that amount can't be passed through to its shareholders this year and must be carried forward because of limitations at the S corporation level. See Regulations section 1.179-1(f)(2).