-Littman LLC placed in service on July 29,2018 machinery and equipment (7-year property)with a basis of $600,000.Littman's income for the current year before any depreciation expense was $100,000.Which of the following statements is true to maximize Littman's total depreciation expense for 2018? (Use MACRS Table 1)
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.

Question

-Littman LLC placed in service on July 29,2018 machinery and equipment (7-year property)with a basis of $600,000.Littman's income for the current year before any depreciation expense was $100,000.Which of the following statements is true to maximize Littman's total depreciation expense for 2018? (Use MACRS Table 1)
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.

Quizplus · Accepted Answer

Littman's §179 expense will be limited to the taxable income of $100,000, so it will be less than $100,000.

-Littman LLC Placed in Service on July 29,2018 Machinery and Equipment