TAX_T2_Sol13.pdf - 65 Award 1.00 point Crouch LLC placed in...

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65.Award: 1.00 pointCrouch LLC placed in service on May 19, 2018 machinery and equipment (7-year property) with a basis of$3,200,000. Assume that Crouch has sufficient income to avoid any limitations. Calculate the maximumdepreciation expense including §179 expensing (but ignoring bonus depreciation). (Use MACRS Table 1)$457,280.$300,000.$714,410.$760,072.None of the choices are correct.The $1,000,000 §179 expense is reduced to $300,000 because of the property placed in service limitation($3,200,000 $2,500,000 threshold). The half-year convention applies. The expense is $714,410 which isdepreciation of $2,900,000 × .1429 = $414,410 plus $300,000 of §179 expense.
ReferencesMultiple ChoiceDifficulty: 2 MediumLearning Objective: 02-03 Calculate thededuction allowable under the additionalspecial cost recovery rules (§179, bonus, andlisted property).
66.Award: 1.00 pointClay LLC placed in service machinery and equipment (7-year property) with a basis of $3,450,000 on June 6,2018. Assume that Clay has sufficient income to avoid any limitations. Calculate the maximum depreciation

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