Clay LLC placed in service machinery and equipment (seven-year property) with a basis of $3,468,000 on June 6, 2021. Assume that Clay has 25 sufficient income to avoid any limitations. Calculate the maximum depreciation expense including $179 expensing (ignoring any possible bonus depreciation). (Use MACRS Table 1.) (Round final answer to the nearest whole number.) Multiple Choice $1,050,000 $498,149 $466,711
Clay LLC placed in service machinery and equipment (seven-year property) with a basis of $3,468,000 on June 6, 2021. Assume that Clay has 25 sufficient income to avoid any limitations. Calculate the maximum depreciation expense including $179 expensing (ignoring any possible bonus depreciation). (Use MACRS Table 1.) (Round final answer to the nearest whole number.) Multiple Choice $1,050,000 $498,149 $466,711
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 25P
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Transcribed Image Text:Table 1 MACRS Half-Year Convention
Depreciation Rate for Recovery Period
3-Year
5-Year
7-Year
10-Year
15-Year
20-Year
Year 1
Year 2
Year 3
Year 4
33.33%
20.00%
14.29%
10.00%
5.00%
3.750%
44.45
32.00
24.49
18.00
9.50
7.219
14.81
19.20
17.49
14.40
8.55
6.677
7.41
11.52
12.49
11.52
7.70
6.177
Year 5
11.52
8.93
9.22
6.93
5.713
Year 6
5.76
8.92
7.37
6.23
5.285
Year 7
8.93
6.55
5.90
4.888
Year 8
4.46
6.55
5.90
4.522
Year 9
6.56
5.91
4.462
Year 10
6.55
5.90
4.461
Year 11
3.28
5.91
4.462
Year 12
5.90
4.461
Year 13
5.91
4.462
Year 14
5.90
4,461
Year 15
5.91
4.462
Year 16
2.95
4.461
Year 17
4.462
Year 18
4,461
Year 19
4.462
Year 20
4,461
Year 21
2.231
Transcribed Image Text:Clay LLC placed in service machinery and equipment (seven-year property) with a basis of $3,468,000 on June 6, 2021. Assume that Clay has
sufficient income to avoid any limitations. Calculate the maximum depreciation expense including §179 expensing (ignoring any possible bonus
25
depreciation). (Use MACRS Table 1.) (Round final answer to the nearest whole number.)
Multiple Choice
$1,050,000
$498,149
$466,711
$668,711
None of the choices are correct.
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