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 $3,464,500 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) $495,077
C) $471,427
D) $636,927
E) None of the choices are correct.