B&P Inc.,a calendar year corporation,purchased only one operating asset during 2017: $599,900 of used computer equipment (5-year recovery property)placed in service on March 18.Assuming that B&P makes a Section 179 election,compute B&P's adjusted tax basis in the property at the end of 2017.
A)$99,900
B)$71,920
C)$79,920
D)$0

Question

Quizplus · Accepted Answer

The correct answer is B because the Section 179 election allows B&P to expense the entire cost of the equipment in the year of purchase, resulting in an adjusted tax basis of $0.

B&P Inc,A Calendar Year Corporation,purchased Only One Operating Asset During 2017