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

question 76

Multiple Choice

Kemp Inc., a calendar year taxpayer, generated over $10 million taxable income in 2014. Kemp made one asset purchase: manufacturing equipment costing $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 2014 cost recovery deduction.

• A) $543,600
• B) $524,915
• C) $506,230
• D) None of the above

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