Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ilene owns an unincorporated manufacturing business. In 2019, she purchases and places in service $2,650,000 of qualifying five-year equipment for use in her business. Her

Ilene owns an unincorporated manufacturing business. In 2019, she purchases and places in service $2,650,000 of qualifying five-year equipment for use in her business. Her taxable income from the business before any depreciation deduction is $900,000. Ilene will elect out of bonus depreciation but plans to take the maximum allowable deduction under Sec. 179. Which of the following statements is true regarding the Sec. 179 election?

A. Ilene can deduct $1,020,000 as a Sec. 179 deduction in 2019, with no carryover to next year.

B. Ilene can deduct $900,000 as a Sec. 179 deduction in 2019, with no carryover to next year.

C. IIene can deduct $900,000 as a Sec. 179 deduction in 2019; $20,000 may be carried over to next year.

D. Ilene can deduct $920,000 as a Sec. 179 deduction in 2019, with no carryover to next year.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert F. Meigs, Jan R. Williams, Mark S. Bettner, Susan F. Haka, Sue Haka

11th Edition

0072516682, 978-0072516685

More Books

Students also viewed these Accounting questions

Question

a null method does not return a value true or false

Answered: 1 week ago

Question

How should Disney manage their global diversity?

Answered: 1 week ago