Problem
Pink Company acquires a new machine (seven-year property) on January 10, 2016, at a cost of $600,000. Pink makes the election to expense the maximum amount under § 179. No election is made to use the straight-line method. White does take additional first-year depreciation. Determine the total deductions in calculating taxable income related to the machine for 2016 assuming Pink has taxable income of $800,000.