Clay LLC Placed in Service Machinery and Equipment (7-Year Property)

Multiple Choice

Clay LLC placed in service machinery and equipment (7-year property) with a basis of $2,450,000 on June 6, 2014. Assume that Clay has sufficient income to avoid any limitations. Calculate the maximum depreciation expense including §179 expensing (ignoring any possible bonus expensing) , rounded to a whole number. Assume that the 2013 §179 limits are extended to 2014:

A) $350,105
B) $392,960
C) $778,070
D) $864,395
E) None of these