White Company Acquires a New Machine (Seven-Year Property) on January

Multiple Choice

White Company acquires a new machine (seven-year property) on January 10, 2017, at a cost of $610,000. White makes the election to expense the maximum amount under § 179, and wants to take any additional first-year depreciation allowed. No election is made to use the straight-line method. Determine the total deductions in calculating taxable income related to the machine for 2017 assuming White has taxable income of $800,000.

A) $87,169
B) $348,585
C) $510,000
D) $524,290
E) None of the above