Martin Corporation acquired 5-year property costing $2,185,000 on September 10, 2018. This is the only property acquired this year and Martin elects to expense the maximum amount under Section 179 and bonus depreciation. Martin's total cost recovery deduction for 2018 is:
A) $542,000
B) $510,000
C) $2,185,000
D) $1,000,000

Question

Quizplus · Accepted Answer

Martin Corporation can expense the entire cost of the property using Section 179 and bonus depreciation, as the total cost is within the limits for 2018.

Martin Corporation Acquired 5-Year Property Costing $2,185,000 on September 10