Davis,Inc.,a motorcycle wheel manufacturer,purchased a new spoke machine in 2016 for $200,000.What are the tax effects of this purchase?
I.If taxable income is $100,000,then $100,000 can be expensed in 2016.
II.No Section 179 election is allowed if Davis decides to use a $200,000 depreciable basis.
III.If Davis had purchased a total of $3,400,000 of equipment in 2016,the corporation can deduct none of the purchases in 2016 through use of the Section 179 election.

Question

Davis,Inc.,a motorcycle wheel manufacturer,purchased a new spoke machine in 2016 for $200,000.What are the tax effects of this purchase?
I.If taxable income is $100,000,then $100,000 can be expensed in 2016.
II.No Section 179 election is allowed if Davis decides to use a $200,000 depreciable basis.
III.If Davis had purchased a total of $3,400,000 of equipment in 2016,the corporation can deduct none of the purchases in 2016 through use of the Section 179 election.
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Quizplus · Accepted Answer

The Answer of Davis,Inc.,a motorcycle wheel manufacturer,purchased a new spoke machine in 2016 for $200,000.What are the tax effects of this purchase?
I.If taxable income is $100,000,then $100,000 can be expensed in 2016.
II.No Section 179 election is allowed if Davis decides to use a $200,000 depreciable basis.
III.If Davis had purchased a total of $3,400,000 of equipment in 2016,the corporation can deduct none of the purchases in 2016 through use of the Section 179 election.
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Davis,Inc,A Motorcycle Wheel Manufacturer,purchased a New Spoke Machine in 2016