Martin Corporation acquired 5-year property costing $2,185,000 on September 10, 2019.This is the only property acquired this year.What is Martin's maximum total cost recovery deduction for 2019 is:
A)$542,000
B)$510,000
C)$2,185,000
D)$1,000,000

Question

Quizplus · Accepted Answer

Martin Corporation can take advantage of the Section 179 deduction and bonus depreciation. The Section 179 limit for 2019 is $1,020,000, and the remaining cost can be deducted using 100% bonus depreciation, allowing the full cost of $2,185,000 to be deducted in 2019.

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