In 2016,Rydin Company purchased one asset costing $38,400 and elected to expense the entire cost.However,Rydin could only deduct $21,000 of the Section 179 expense because of the taxable income limitation.In 2017,Rydin purchased tangible personalty costing $80,000.Rydin's taxable income without regard to any Section 179 deduction was $912,400.Compute Rydin's 2017 Section 179 deduction.
A)$17,400
B)$510,000
C)$517,400
D)$0

Question

Quizplus · Accepted Answer

In 2017, Rydin's taxable income before the Section 179 deduction is $912,400. The maximum Section 179 deduction for 2017 is $510,000 based on the $2,030,000 investment limit. Since Rydin did not take any Section 179 deduction in the previous year, there's no carryover amount to consider. Therefore, the full $510,000 deduction is available, and that is the correct answer (option B).

In 2016,Rydin Company Purchased One Asset Costing $38,400 and Elected