Song Company, a calendar year taxpayer, purchased a total of $2,534,400 tangible personalty in 2018. How much of this cost can Song elect to expense under Section 179?
A) -0-
B) $1,000,000
C) $2,534,400
D) $965,600

Question

Song Company, a calendar year taxpayer, purchased a total of $2,534,400 tangible personalty in 2018. How much of this cost can Song elect to expense under Section 179? 
A) -0-
B) $1,000,000
C) $2,534,400
D) $965,600

Quizplus · Accepted Answer

Song can elect to expense $965,600 of the cost ($1,000,000 limited dollar amount - [$2,534,400 - $2,500,000]).

Song Company, a Calendar Year Taxpayer, Purchased a Total of $2,534,400