Ilene Owns an Unincorporated Manufacturing Business

question 50

Multiple Choice

Ilene owns an unincorporated manufacturing business.In 2014,she purchases and places in service $206,000 of qualifying five-year equipment for use in her business.Her taxable income from the business before any Sec.179 deduction is $17,000.Elaine takes the maximum allowable deduction under section 179.Which of the following statements is true regarding the Sec.179 election?

• A)Ilene can deduct $25,000 as a section 179 deduction in 2014,with no carryover to next year.
• B)Ilene can deduct $19,000 as a section 179 deduction in 2014.
• C)IIene can deduct $17,000 as a section 179 deduction in 2014; $2,000 may be carried over to next year.
• D)Ilene can deduct $17,000 as a section 179 deduction in 2014 ,with no carryover to next year.

---

Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.

Price

The amount of money expected, required, or given in exchange for something else, such as goods or services.

Quantity Consumers

Refers to the number of individual buyers or units purchased in the market.

Income Effect

Refers to the change in the quantity of a product demanded by consumers due to a change in their income.