Taxable income associated to the machines


Bornei Company acquires used special tools (three-year property) on February 15, 2003, at a cost of $75,000. Bornei also acquires a used machine (five-year property) on November 15, 2003, at a cost of $50,000. No election is made to use the straight-line method. The company does not make the § 179 election. Determine the total deductions in calculating taxable income related to the machines for 2004.

a. $34,998.

b. $39,835.

c. $46,248.

d. $49,338.

e. None of the above.

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Accounting Basics: Taxable income associated to the machines
Reference No:- TGS093700

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