Larry purchases machinery for his business (7-year MACRS property) on April 1 at a cost of $547,000.

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Larry purchases machinery for his business (7-year MACRS property) on April 1 at a cost of $547,000. On June 1, he spends $84,000 for equipment (5-year MACRS property). Larry does not want to claim bonus depreciation.

a. What is the maximum deduction allowable?

b. What is the minimum deduction allowable?

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Concepts In Federal Taxation

ISBN: 9780324379556

19th Edition

Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher

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Question Posted: Mar 29, 2013 02:33 AM

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Larry purchases machinery for his business (7-year MACRS property) on April 1 at a cost of $547,000.

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a To obtain the maximum deduction Larry should elect to expense 500000 of the cost of the purchases ...View the full answer

Concepts In Federal Taxation

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