Littman LLC Placed in Service on July 29, 2019, Machinery

question 3

Multiple Choice

Littman LLC placed in service on July 29, 2019, machinery and equipment (seven-year property) with a basis of $600,000.Littman's income for the current year before any depreciation deduction was $100,000.Which of the following statements is true to maximize Littman's total depreciation deduction for 2019? (Use MACRS Table 1.)

• A)Littman should take §179 expense equal to the maximum $1,000,000.
• B)Littman should take no §179 expense.
• C)Littman's §179 expense will be greater than $100,000.
• D)Littman's §179 expense will be less than $100,000.
• E)None of the choices are correct.

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Definitions:

Wages

Payments made to employees based on the hours worked or the output produced; it is the price of labor.

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Fixed regular payments made by employers to employees, typically on a monthly or biweekly basis, in exchange for the professional services rendered.

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A yardstick for the cost measures of all new, nationally manufactured, final goods and services in an economy.