Determine the total deductions in calculating taxable income

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Indigo Company acquires a new machine (ten-year property) on January 15, 2010, at a cost of $100,000. Indigo also acquires another new machine (seven-year property) on November 5, 2010, at a cost of $20,000. 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 2010.

a. $12,000.

b. $12,858.

c. $55,000.

d. $66,429.

e. None of the above

Reference no: EM13142252

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