Christine and Sean run an accounting computer software business in Snellville. Toward the end of November 2021, they consider placing $2,697,000 of computer equipment into service. This will be the only equipment placed into service during 2021. They wish to elect out of bonus depreciation for the year. Which of the following statements is true, assuming that their 2021 net income before Section 179 expensing on Schedule C is $2,890,000 and they have no other compensation to report? O O The amount expensed under IRC Section 179 must be reduced by the amount by which the A. cost of the equipment exceeds $2,620,000, the qualifying property investment limit. B. They are eligible to elect the full Section 179 expense of $1,050,000. C. They are eligible to elect the full Section 179 expense of $2,620,000. D. They are not able to depreciate the cost of the equipment by which it exceeds the investment limitation. Submit Answers
Christine and Sean run an accounting computer software business in Snellville. Toward the end of November 2021, they consider placing $2,697,000 of computer equipment into service. This will be the only equipment placed into service during 2021. They wish to elect out of bonus depreciation for the year. Which of the following statements is true, assuming that their 2021 net income before Section 179 expensing on Schedule C is $2,890,000 and they have no other compensation to report? O O The amount expensed under IRC Section 179 must be reduced by the amount by which the A. cost of the equipment exceeds $2,620,000, the qualifying property investment limit. B. They are eligible to elect the full Section 179 expense of $1,050,000. C. They are eligible to elect the full Section 179 expense of $2,620,000. D. They are not able to depreciate the cost of the equipment by which it exceeds the investment limitation. Submit Answers
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 51P
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Transcribed Image Text:Select the best answer.
Christine and Sean run an accounting computer software business in Snellville. Toward the end of November
2021, they consider placing $2,697,000 of computer equipment into service. This will be the only equipment
placed into service during 2021. They wish to elect out of bonus depreciation for the year.
Which of the following statements is true, assuming that their 2021 net income before Section 179 expensing on
Schedule C is $2,890,000 and they have no other compensation to report?
O
O
O
The amount expensed under IRC Section 179 must be reduced by the amount by which the
A.
cost of the equipment exceeds $2,620,000, the qualifying property investment limit.
B. They are eligible to elect the full Section 179 expense of $1,050,000.
C. They are eligible to elect the full Section 179 expense of $2,620,000.
D.
They are not able to depreciate the cost of the equipment by which it exceeds the investment
limitation.
Submit Answers
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