Lenter LLC Placed in Service on April 29, 2016 Machinery

question 70

Multiple Choice

Lenter LLC placed in service on April 29, 2016 machinery and equipment (7-year property) with a basis of $600,000. Assume that Lenter has sufficient income to avoid any limitations. Calculate the maximum depreciation expense including section 179 expensing (but ignoring bonus expensing) . Assume that the 2015 §179 limits are identical to 2016:

• A) $85,740
• B) $120,000
• C) $514,290
• D)$585,740
• E)None of these

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Definitions:

Value-Added Time

The portion of the production process where actual value is added to the product, as opposed to non-value-added activities.

Processing Time

The amount of time required to complete a particular process, often used in manufacturing and computer operations.

Failing to Control Quality

A detrimental situation where an organization does not manage or uphold the standard of its products or services.

Prevention Costs

Costs incurred to prevent faults or errors in products or services, typically including quality control and training expenses.