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  3. on july 1 of the current year, jeremiah company pu

On July 1 of the current year, Jeremiah Company purchased and placed into service factory...

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Accounting

On July 1 of the current year, Jeremiah Company purchased and placed into service factory machinery to be used in its operations. The machinery cost $150,000 and qualifies as 7-year MACRS property. The machines were the only assets placed into service during the year. Jeremiah elects to expense $50,000 under Section 179 and nothing under bonus depreciation. The companys taxable income before any deduction related to the machines is $80,000. Assume the depreciation table percentages are 14.29% for Year 1 and 24.49% for Year 2. What is the total maximum expense deduction for these machines in the current year? SHOW WORK FOR PARTIAL CREDIT.

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