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28 July, 14:03

Littman LLC placed in service on July 29, 2019, machinery and equipment (seven-year property) with a basis of $600,000. Littman's income for the current year before any depreciation deduction was $100,000. Which of the following statements is true to maximize Littman's total depreciation deduction for 2019?

A) Littman should take $179 expense equal to the maximum $1,000,000.

B) Littman should take no $179 expense.

C) Littman's $179 expense will be greater than $100,000.

D) Littman's $179 expense will be less than $100,000

E) None of the choices are correct. de out

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Answers (1)
  1. 28 July, 16:30
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    Option C) Littman's $179 expense will be greater than $100,000

    Explanation:

    dа ta:

    Littman LLC placed in service on July 29, 2019, machinery and equipment (seven-year property) with a basis of $600,000. Littman's income for the current year before any depreciation deduction was $100,000

    From the options, In order to minimize depression, Littman's $179 expense will be greater than $100,000. This will come from the profit loss reconciliation. Hence option C will be the correct option in this case.
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