Lenter LLC Placed in Service on April 29, 2019, Machinery

question 83

Multiple Choice

Lenter LLC placed in service on April 29, 2019, machinery and equipment (seven-year property) with a basis of $1,600,000.Assume that Lenter has sufficient income to avoid any limitations.Calculate the maximum depreciation deduction including §179 expensing (but ignoring bonus expensing) .(Use MACRS Table 1.)

• A)$228,640.
• B)$1,020,000.
• C)$1,102,882.
• D)$1,228,640.
• E)None of the choices are correct.

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Definitions:

Cost Depletion

An accounting method used for allocating the cost of natural resources (like timber, oil, or minerals) over the period that they are extracted and sold.

Income Tax Allocation

The process of assigning income taxes to different departments, periods, or product lines in financial accounting.

Pretax Financial Income

The amount of income that a company has earned before any taxes have been deducted, as reported on the income statement.

Comprehensive

Including or dealing with all or nearly all elements or aspects of something.