A Client Placed $2,800,000 of Five-Year Equipment into Service in January

question 7

Multiple Choice

A client placed $2,800,000 of five-year equipment into service in January 2019.Because taxable income is more than $10,000,000,she would like to maximize this year's depreciation deduction.The largest deduction allowed is

• A)$2,800,000.
• B)$560,000.
• C)$1,176,000.
• D)$1,020,000.

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Definitions:

Consolidate Manufacturing

The process of centralizing or combining the production operations and facilities to improve efficiency and reduce costs.

Flexible Technology

Systems or equipment that can easily adapt to changes in production volume, design, or process, enhancing a company's ability to respond to market changes.

Facility Costs

Expenses associated with the physical means through which a company operates, such as rent, utilities, and maintenance of buildings and equipment.

Tariffs

Taxes or duties to be paid on a particular class of imports or exports, affecting the price and demand for goods.