Question
TKM, LLC purchased office furniture for use in its business on October 15, 2022. The furniture was the only asset TKM, LLC acquired during 2022.
TKM, LLC purchased office furniture for use in its business on October 15, 2022. The furniture was the only asset TKM, LLC acquired during 2022. The cost of the office furniture was $1,900,000. In addition to the purchase price, TKM, LLC incurred the following additional costs related to the furniture in 2022:
$40,000 to ship the furniture to TKM, LLC's business location in Chicago, Illinois;
$50,000 to stain the furniture to match TKM, LLC's office decor;
$120,000 for sales tax on the purchase of the furniture;
$10,000 for annual maintenance of the furniture.
TKM, LLC elected NOT to claim 100% bonus depreciation on the office furniture in 2022. In the absence of 100% bonus depreciation, if TKM, LLC's 2022 taxable income (before considering depreciation expense) is $10,000,000, what is the maximum amount of depreciation expense TKM, LLC can deduct for the office furniture in 2022? $
please correct answer
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