Littman LLC Placed in Service on July 29,2017 Machinery and Equipment

question 57

Multiple Choice

Littman LLC placed in service on July 29,2017 machinery and equipment (7-year property) with a basis of $600,000.Littman's income for the current year before any depreciation expense was $100,000.Which of the following statements is true to maximize Littman's total depreciation expense for 2017? (Use MACRS Table 1 in the text)

• A) Littman should take §179 expense equal to the maximum $510,000.
• B) Littman should take no §179 expense.
• C) Littman's §179 expense will be greater than $100,000.
• D) Littmen's §179 expense will be less than $100,000.
• E) None of the choices are correct.

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Definitions:

Sex-linked

Referring to traits genetically determined by genes located on sex chromosomes.

Autosomal

Pertaining to any of the chromosomes except the sex chromosomes; relating to genes that are located on the autosomes.

Recessive

A term used to describe a gene that expresses its trait only when paired with an identical gene.

X-linked Recessive

A mode of inheritance where a recessive gene on the X chromosome causes a condition or trait to be expressed primarily in males.