In 2016,Sanford Corporation purchases and places in service $2,410,000 of equipment for its manufacturing business.What portion of the $2,410,000 may Sanford elect to treat as a Section 179 expense?
A)$-0-
B)$15,000
C)$20,000
D)$25,000
E)$90,000

Question

Quizplus · Accepted Answer

The maximum amount that can be treated as a Section 179 expense for 2016 is $500,000. Since the equipment purchased by Sanford Corporation is less than $500,000, it can treat the entire amount as a Section 179 expense. Therefore, the answer is E, $90,000, which is the full amount of the equipment purchased.

In 2016,Sanford Corporation Purchases and Places in Service $2,410,000 of Equipment