Tan Company Acquires a New Machine (Ten-Year Property) on January

Multiple Choice

Tan Company acquires a new machine (ten-year property) on January 15, 2017, at a cost of $200,000. Tan also acquires another new machine (seven-year property) on November 5, 2017, at a cost of $40,000. No election is made to use the straight-line method. The company does not make the § 179 election and elects to not take additional first-year depreciation. Determine the total deductions in calculating taxable income related to the machines for 2017.

A) $24,000
B) $25,716
C) $102,000
D) $132,858
E) None of the above