Sophie owns an unincorporated manufacturing business. In July, 2020, she purchases and places in service $2,500,000 of
Question:
Sophie owns an unincorporated manufacturing business. In July, 2020, she purchases and places in service $2,500,000 of qualifying five-year equipment for use in her business. Her taxable income from the business before any Sec. 179 deduction is $900,000. Sophie elects to expense the maximum under Sec. 179 and does not apply bonus depreciation. What is Sophie's maximum total cost recovery deduction(MACRS depreciation and Sec. 179) for 2021?
A) $900,000
B) $2,500,000
C) $1,220,000
D) $1,332,000
On October 24th of this year, David acquired and placed into service 7-year business equipment costing $80,000. In addition, on April 18th of this year, David had also placed in
business use 5-year recovery property costing $15,000. David did not apply Sec. 179 immediate expensing or bonus depreciation. No other assets were purchased during the year. The depreciation for this year is:
A) $3,606.
B) $6,606.
C) $13,576.
D) $14,432.
