1. John Company acquires a new machine (seven-year property) on January 10, 2020, at a cost of $600,000. John Company makes the election to expense the maximum amount under 179. No election is made to use the straight-line method. John does not take additional first-year depreciation. Determine the total deductions in calculating taxable income related to the machine for 2020 assuming John has taxable income of $500,000.

a. $500,000. b. $128,610. c. $385,296. d. $390,868. e. $557,145.

2.Johnny purchased a hotel building on May 27, 2019, for $3,500,000 and placed it in service the same year. Determine the cost recovery deduction for 2020 (the second year).

	a.	$56,175.
	b.	$89,740.
	c.	$69,000.
	d.	$76,920.