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:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow that suggests human needs are arranged in a hierarchy from physiological needs to self-actualization.

Physiological Needs

Basic physical requirements essential for human survival, such as food, water, and shelter, as described in Maslow's hierarchy of needs.

Self-Actualization

The accomplishment of realizing one's full capabilities and potential, seen as an intrinsic aspiration or necessity among all humans.

Appraisal Theory

A theory in psychology that suggests emotions are derived from an individual's evaluation (appraisal) of a situation in terms of how it impacts their well-being.