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In 2007, Tiger Corporation, a calendar-year taxpayer, purchases and places into service machinery with a 7-year

life that cost $268,000.  The mid-quarter convention does not apply. Tiger elects to depreciate the maximum under Sec. 179.  Tiger's taxable income for the year before the Sec. 179 deduction is $150,000.  What is Tiger's total depreciation deductions related to this property? a. $38,297 b. $112,000 c. $134,292 d. $150,297 18. This year, a contractor agrees to build a building for $2,500,000 by the end of next year.  The builder's cost is estimated to be $1,800,000.  The actual costs this year are $900,000 and next year's actual costs are $1,300,000.  Under the percentage of completion method this year's gross profit is a. $0. b. $300,000. c. $350,000. d. $700,000.

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