Littman LLC Placed in Service on July 29, 2016 Machinery

question 48

Multiple Choice

Littman LLC placed in service on July 29, 2016 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 2016? (Assume that the 2015 §179 limits are identical to 2016.)

• A) Littman should take §179 expense equal to the maximum $500,000.
• 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 these

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Definitions:

Quality

The degree to which a set of inherent characteristics fulfills requirements or expectations, often associated with excellence or superiority.

Inventory Cycle

The series of stages that inventory goes through, from initial purchase or production to sale, including restocking and management.

Stocking Level

Refers to the quantity of inventory kept on hand by a business to meet demand without incurring stockouts or excessive surplus.

Standardized Parts

are components manufactured to a set specification that can be used interchangeably in various products, reducing costs and simplifying production.