Everest Corp.acquires a machine (seven-year property)on January 10,2013 at a cost of $2,015,000.Everest makes the election to expense the maximum amount under Sec.179,but elects out of bonus depreciation.
a.Assume that the taxable income from trade or business is $1,000,000.
b.Assume instead that the taxable income from trade or business is $400,000.

Question

Everest Corp.acquires a machine (seven-year property)on January 10,2013 at a cost of $2,015,000.Everest makes the election to expense the maximum amount under Sec.179,but elects out of bonus depreciation.
a.Assume that the taxable income from trade or business is $1,000,000.
  b.Assume instead that the taxable income from trade or business is $400,000.

Quizplus · Accepted Answer

The Answer of Everest Corp.acquires a machine (seven-year property)on January 10,2013 at a cost of $2,015,000.Everest makes the election to expense the maximum amount under Sec.179,but elects out of bonus depreciation.
a.Assume that the taxable income from trade or business is $1,000,000.
  b.Assume instead that the taxable income from trade or business is $400,000.