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John Company acquires a new machine (seven-year property) on January 10, 2018, at a cost of $600,000. John Company makes the election to expense the
John Company acquires a new machine (seven-year property) on January 10, 2018, 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 2017 assuming John has taxable income of $500,000.
| a. | $500,000 |
| b. | $128,610 |
| c. | $385,296 |
| d. | $390,868 |
| e. | $557,145 |
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