9) Milo Corporation, a calendar-year taxpayer, purchases and places into service machinery with a 7-year life...
9) Milo Corporation, a calendar-year taxpayer, purchases and places into service machinery with a 7-year life that costs $1,140,000. It was placed in service early in the year and was the only addition this year. Milo elects to depreciate the maximum under Sec. 179 and does not apply bonus depreciation. Milo taxable income for the year before the Sec. 179 deduction is $1,700,000. What is Milo's total depreciation deduction related to this property?
A) $1,140,000
B) $1,020,006
C) $162,906
D) $1,028,000
Homework Answers
answer is option B $1020006
|
Maximum Sect. 179 deduction |
$1000000 |
|
MACRS Depreciation [($1140,000 - $1000,000) × 0.1429] |
20006 |
|
Total depreciation |
1020006 |
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9) Milo Corporation, a calendar-year taxpayer, purchases and
places into service machinery with a 7-year life...
3. (5 points) White Corporation purchases a heavy piece of machinery (7-year property) on November 8, 2019, at a co...
3. (5 points) White Corporation purchases a heavy piece of machinery (7-year property) on November 8, 2019, at a cost of $2,950,000. White Corporation has taxable income from its business in 2019 of $1,550,000 and elects to expense the maximum amount for the machinery purchase under Section 179 but elects out of bonus depreciation for this purchase. Compute White's allowable expensing deduction under Section 179 and allowable MACRS depreciation for the machinery in 2019 assuming that the machine is the...
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