Laven Company, a calendar year taxpayer, purchased a total of $561,240 new depreciable personalty during 2014. Which of the following statements is true?
A) Laven can elect to expense $500,000 of the cost. The $61,240 remaining cost is capitalized and subject to 50% bonus and MACRS depreciation.
B) Laven can elect to expense $500,000 of the cost. The $61,240 remaining cost is capitalized and is not depreciable.
C) Laven can expense the entire $561,240 cost using 100% bonus depreciation.
D) The amount of the cost that Laven can elect to expense depends on Laven's 2014 taxable income.
Correct Answer:
Verified
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