White Company acquires a new machine (seven-year property) on January 10, 2019, at a cost of $620,000. White makes the election

Question

3 years ago

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White Company acquires a new machine (seven-year property) on January 10, 2019, at a cost of $620,000. White makes the election

to expense the maximum amount under § 179, and wants to take any additional first-year depreciation allowed. No election is made to use the straight-line method. Determine the total deductions in calculating taxable income related to the machine for 2019 assuming White has taxable income of $800,000.

Business

2 answers:

pashok25 [27] · Answer 1 · 2022-03-26T15:52:31+03:00

pashok25 [27]3 years ago

6 0

Answer:

Please see attachment

Explanation:

Please see attachment

alukav5142 [94] · Answer 2 · 2022-03-26T14:40:29+03:00

Answer: the correct answer is $620,000.

Explanation: Section 179 Increased to One Million for 2018: Jan 2, 2018 – With the passage and signing into law of H.R.1, aka, The Tax Cuts and Jobs Act, the deduction limit for Section 179 increases to $1,000,000 for 2018 and beyond. The limit on equipment purchases likewise has increased to $2.5 million.