Question

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

Answer 1

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

Step-by-step explanation:

Data:

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.