Question
If a business purchases $2,940,000 in equipment during a given year, what is the impact on the Section 179 election? a. The ceiling amount will
If a business purchases $2,940,000 in equipment during a given year, what is the impact on the Section 179 election?
| a. | The ceiling amount will be reduced by $730,000 to a maximum eligible deduction of $320,000 for the current year with a $0 carry forward. | |
| b. | The business will only be able to take the Section 179 deduction on $1,050,000 of the assets purchased. | |
| c. | The ceiling amount will be reduced by $320,000 to a maximum eligible deduction of $730,000 for the current year with a $0 carry forward. | |
| d. | The Section 179 deduction is eliminated when purchases exceeds $2,620,000 in 2021. |
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Financial Accounting The Basics
Authors: Ilias Basioudis
1st Edition
1138605514, 9781138605510
