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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...

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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