Sophie owns an unincorporated manufacturing business. In 2021, she purchases and places in service $2,627,000 of qualifying five-year equipment for use in her business. Her taxable income from the business before any Sec. 179 deduction is $940,000. Sophie elects to expense the maximum under Sec. 179 and does not apply bonus depreciation. What is Sophie's maximum total cost recovery deduction for 2021? a. $940,000 b. $1,043,000 c. $1,256,800 d. $1,277,400

Sophie owns an unincorporated manufacturing business. In 2021, she purchases and places in service $2,627,000 of qualifying five-year equipment for use in her business. Her taxable income from the business before any Sec. 179 deduction is $940,000. Sophie elects to expense the maximum under Sec. 179 and does not apply bonus depreciation. What is Sophie's maximum total cost recovery deduction for 2021? a. $940,000 b. $1,043,000 c. $1,256,800 d. $1,277,400

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 27P

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