Martin Corporation acquired 5-year property costing $2,185,000 on September 10, 2017. This is the only property acquired this year and Martin elects to expense the maximum amount under Section 179. Martin's total cost recovery deduction for 2017 is:

Question

Quizplus · Accepted Answer

[$510,000 - (2,185,000 - $2,030,000) = $335,000 maximum Sec. 179 expense deduction; [($2,185,000 - $335,000 Sec. 179) x .2)] = $370,000 + $335,000 Sec. 179 = $705,000 total cost recovery

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