Kemp Inc, a Calendar Year Taxpayer, Generated Over $10 Million Taxable

question 92

Multiple Choice

Kemp Inc., a calendar year taxpayer, generated over $10 million taxable income in 2018. Kemp made one asset purchase: used manufacturing equipment costing $1,543,600. The equipment has a 7-year recovery period and was placed in service on June 14. Assuming that Kemp made the Section 179 election with respect to the equipment, compute Kemp's 2018 cost recovery deduction. 

• A) $1,543,600
• B) $1,077,680
• C) $1,000,000
• D) None of the above

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