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.