Elakin Inc., a calendar year taxpayer, paid $1,339,000 for new machinery (seven-year recovery property) placed in service on August 29, 2020. The machinery was Elakin's only asset purchase during 2020, and Elakin's taxable income before any Section 179 deduction was $14 million.Compute Elakin's 2020 cost recovery deduction with respect to the machinery.How would your answer change if the cost of the machinery was $2,150,000 instead of $1,339,000?How much Section 179 expense would be taken in part a if Elakin's taxable income before any Section 179 deduction was $281,400 instead of $14 million?

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The Answer of Elakin Inc., a calendar year taxpayer, paid $1,339,000 for new machinery (seven-year recovery property) placed in service on August 29, 2020. The machinery was Elakin's only asset purchase during 2020, and Elakin's taxable income before any Section 179 deduction was $14 million.Compute Elakin's 2020 cost recovery deduction with respect to the machinery.How would your answer change if the cost of the machinery was $2,150,000 instead of $1,339,000?How much Section 179 expense would be taken in part a if Elakin's taxable income before any Section 179 deduction was $281,400 instead of $14 million?