Tan Company Acquires a New Machine (Ten-Year Property) on January

question 98

Multiple Choice

Tan Company acquires a new machine (ten-year property) on January 15, 2018, at a cost of $200,000. Tan also acquires another new machine (seven-year property) on November 5, 2018, at a cost of $40,000. No election is made to use the straight-line method. The company does not make the § 179 election and elects to not take additional first-year depreciation. Determine the total deductions in calculating taxable income related to the machines for 2018.

• A) $24,000
• B) $25,716
• C) $102,000
• D) $132,858
• E) None of the above

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Collectivist Culture

Culture that emphasizes the importance of belonging to a larger group, such as a family, tribe, or nation.

Self-Esteem

An individual's overall subjective evaluation of their own worth or value.

Different Culture

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A psychological perspective that focuses on how people think, understand, and know about the world.