Pyle Inc.,a calendar year taxpayer,generated over $10 million taxable income in 2017.Pyle made one asset purchase: new transportation equipment costing $322,000.The equipment has a 5-year recovery period and was placed in service on February 9.Assuming that Pyle made the Section 179 election with respect to the equipment,compute Pyle's 2017 cost recovery deduction.

Question

Quizplus · Accepted Answer

Pyle can elect to expense the entire cost of the equipment ($322,000) under Section 179, as the limit for Section 179 in 2017 was $510,000, which is more than the cost of the equipment.

Pyle Inc,a Calendar Year Taxpayer,generated Over $10 Million Taxable Income in in 2017.Pyle