Lenter LLC Placed in Service on April 29,2013 Machinery and Equipment

question 48

Multiple Choice

Lenter LLC placed in service on April 29,2013 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) :

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

---

Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which may not be indicative of the market value.

Debit Balance

A debit balance is the amount that remains in a particular account within a bookkeeping ledger, primarily indicating money owed or expenses that have surpassed credits.

Retained Earnings

This part of shareholders' equity reflects the accumulated net income retained for reinvestment in the business, rather than being paid out in dividends.

Paid-In Capital

The total amount of capital that shareholders have directly contributed to a company in exchange for shares.