Sorensen Corporation purchases equipment in 2016 for $200,000.Sorensen has substantial taxable income and desires to minimize this amount to the fullest extent possible.How much can Sorensen deduct under Section 179?

Question

Quizplus · Accepted Answer

In 2016, the maximum deduction under Section 179 was $500,000, so Sorensen can deduct the full cost of the equipment, $200,000, as it is below the limit.

Sorensen Corporation Purchases Equipment in 2016 for $200,000