Hermione purchased and placed in service machine costing $2,500,000 in November of 2020. This is the only

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Hermione purchased and placed in service machine costing $2,500,000 in November of 2020. This is the only asset she placed in service during the year. Her net income for the year is $2,000,000.

a) What is her depreciation deduction for 2020 if she elects Section 179?

b) What is her depreciation deduction for 2020 if makes no elections and uses MACRS?

c) What is her depreciation deduction for 2020 if she elects Additional First Year (Bonus) depreciation?

d) Which method would you recommend for her?

Related Book For answer-question

South western Federal Taxation 2017 Essentials of Taxation Individuals and Business Entities

ISBN: 9780357109144

20th edition

Authors: William A. Raabe, David M. Maloney, James C. Young, Annette Nellen

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Posted Date: Nov 02, 2020 11:15 PM

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Hermione purchased and placed in service machine costing $2,500,000 in November of 2020. This is the only

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a The depreciation deduction for 2020 if she elects Section 179 1st year writeoffs Section 179 Deduc... View the full answer

South western Federal Taxation 2017 Essentials of Taxation Individuals and Business Entities

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