Rex's Wrecks purchased $150,000 in new equipment during the current year. Rex's gross business income for the year is $1,150,000 and his business expenses (including regular and bonus depreciation) before Section 179 deduction total $1,200,000. Assuming Rex wants to take the maximum Section 179 deduction allowable, which of the following statements is correct?

Multiple choice question.

He can expense $50,000 in the current year and carry forward $100,000 until next year.

He can expense all $150,000 in the current year and have nothing to carry forward until next year.

He can NOT use the Sec. 179 expense this year.

He can expense the maximum $1,020,000 in the current year and have nothing to carry forward until next year.