Crouch LLC Placed in Service on May 19, 2016 Machinery

question 28

Multiple Choice

Crouch LLC placed in service on May 19, 2016 machinery and equipment (7-year property) with a basis of $2,200,000. Assume that Crouch has sufficient income to avoid any limitations. Calculate the maximum depreciation expense including §179 expensing (but ignoring bonus expensing) . (Assume that the 2015 §179 limits are identical to 2016.)

• A) $314,380.
• B) $440,000.
• C) $571,510.
• D)$742,930.
• E)None of these

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Definitions:

Price Gouging

The act of charging excessively high prices for goods or services, usually during times of emergency or shortage.

Outsourcing

The business practice of hiring parties outside a company to perform services or create goods that traditionally were performed in-house by the company's own employees.

T-Shirts

Casual shirts made of fabric, typically having short sleeves and no collar, popular for everyday wear.

Economic Grounds

The basis or rationale for decisions or actions based on financial or economic factors.