Broadus,a calendar year taxpayer,purchased a total of $128,300 tangible personalty in 2017.Broadus' taxable income without regard to a Section 179 deduction was $92,600.Which of the following statements is true?
A)Broadus can elect to expense only $92,600 of the cost of the personalty.
B)Broadus can elect to expense the $128,300 cost of the personalty but can deduct only $92,600 of the expense.
C)Broadus can elect to expense only $35,700 of the cost of the personalty.
D)Broadus can elect to expense the $128,300 cost of the personalty but can deduct only $35,700 of the expense.

Question

Quizplus · Accepted Answer

Broadus can elect to expense the full cost of $128,300 under Section 179, but the deduction is limited to the taxable income of $92,600.

Broadus,a Calendar Year Taxpayer,purchased a Total of $128,300 Tangible Personalty