Clay LLC Placed in Service Machinery and Equipment (Seven-Year Property)

Multiple Choice

Clay LLC placed in service machinery and equipment (seven-year property) with a basis of $3,450,000 on June 6, 2020. Assume that Clay has sufficient income to avoid any limitations. Calculate the maximum depreciation expense including §179 expensing (ignoring any possible bonus depreciation) .

A) $1,040,000
B) $344,389
C) $467,283
D) $647,283
E) None of the choices are correct.