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

question 80

Multiple Choice

Tan Company acquires a new machine (ten-year property) on January 15, 2017, at a cost of $200,000. Tan also acquires another new machine (seven-year property) on November 5, 2017, 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 2017.

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

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Definitions:

Composite Volcanoes

Volcanoes constructed from multiple layers of lava flows, volcanic ash, and other volcanic debris, characterized by steep profiles and periodic explosive eruptions.

Lahars

Volcanic mudflows or debris flows that occur when volcanic materials become saturated with water and rapidly move down slopes.

Pyroclastic Column

A dense, vertical cloud of hot volcanic ash, gas, and debris that rises from a volcanic eruption, capable of causing widespread destruction.

Volcanic Ash

Fine particles of rock and glass created by volcanic eruptions.