Littman LLC Placed in Service on July 29, 2020, Machinery

question 89

Multiple Choice

Littman LLC placed in service on July 29, 2020, 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 2020? (Use MACRS Table 1.)

• A)Littman should take §179 expense equal to the maximum $1,040,000.
• 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:

Flexible Scheduling

Employment arrangements that allow workers to vary their arrival and departure times, as well as the place of work, to accommodate personal needs and improve work-life balance.

Payroll Costs

The total expenses incurred by an organization for employee wages, salaries, benefits, and taxes.

Family-friendly Benefit

Benefits offered by employers to help employees balance their work and family responsibilities, such as flexible working hours or childcare services.

Eldercare

Care provided to an elderly relative by an employee who remains actively at work.