Rodriguez Corporation acquired 7-year property costing $50,000 on October 1,2015.This is the only property acquired this year and Rodriguez elects to expense the maximum amount under Section 179.Rodriguez's income before deducting depreciation is $20,000.What is the maximum amount that Rodriguez can deduction in 2015 for Section 179 expensing?
A)$10,000
B)$15,000
C)$20,000
D)$25,000

Question

Quizplus · Accepted Answer

$25,000 is the maximum potential Section 179 deduction but is limited to Rodriguez's income of $20,000.

Rodriguez Corporation Acquired 7-Year Property Costing $50,000 on October 1,2015