Clay LLC placed in service machinery and equipment (seven-year property) with a basis of $3.465.000 on June 6, 2021. Assume that Clay has sufficient income to avoid any limitations. Calculate the maximum

depreciation expense including $179 expensing (ignoring any possible bonus depreciation). (Use MACRS Table 1. (Round final answer to the nearest whole number.)

multiple choice:

a) 1,050,000

b) 497,292

c) 465,854

d) 670,854

MACRS Table1:

Table 1 MACRS Half Year Convention 20-Year Year 1 Year 2 Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year 33.33% 20.00% 14.29% 10.00% 5.00% 44.45 32.00 24.49 18.00 9.50 14.81 19.20 17.49 14.40 8.55 7.41 11.52 12.49 11 52 7.70 11.52 8.93 9.22 6.93 Year 3 3.750% 7.219 6.677 6.177 5.713 Year 4 Year 5 Year 6 5.76 8.92 7.37 6.23 5.285 8.93 Year 7 Years 6.55 6.55 6.56 5.90 5.90 4.888 4.522 4.46 Year 9 5.91 4.462 Year 10 Year 11 6.55 3.28 4.461 4.462 4.461 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 5.90 5.91 5.90 5.91 5.90 5.91 2.95 4.462 4.461 4.462 4.461 4.462 4.461 4.462 Year 21 4.461 2.231