Calculating taxable income related to the machines


Indigo Company acquires a new machine (ten-year property) on January 15, 2008, at a cost of $100,000. Indigo also acquires another new machine (seven-year property) on November 5, 2008, at a cost of $20,000. No election is made to use the straight-line method. The company does not make the § 179 election. Indigo does elect not to take additional first-year depreciation. Determine the total deductions in calculating taxable income related to the machines for 2008.

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Accounting Basics: Calculating taxable income related to the machines
Reference No:- TGS083789

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