In 2018, Sanford Corporation purchases and places in service $3,370,000 of equipment for its manufacturing business. What portion of the $3,370,000 may Sanford elect to treat as a Section 179 expense?
A)$-0-
B)$15,000
C)$20,000
D)$25,000
E)$130,000

Question

Quizplus · Accepted Answer

The maximum amount that can be treated as a Section 179 expense in 2018 is $1,000,000, and the phase-out threshold is $2,500,000. Since Sanford Corporation purchases and places in service $3,370,000 of equipment, the amount exceeding the phase-out threshold is $870,000. Therefore, the maximum amount that can be treated as a Section 179 expense is $1,000,000 - $870,000 = $130,000.

In 2018, Sanford Corporation Purchases and Places in Service $3,370,000