In 2016, Gail Had a § 179 Deduction Carryover of $30,000

question 16

Multiple Choice

In 2016, Gail had a § 179 deduction carryover of $30,000. In 2017, she elected § 179 for an asset acquired at a cost of $115,000. Gail's § 179 business income limitation for 2017 is $140,000. Determine Gail's § 179 deduction for 2017.

• A)$25,000
• B)$115,000
• C)$130,000
• D)$140,000
• E)None of the above

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Definitions:

Drop a Product

The decision by a company to cease the production and sale of a particular product.

Rent

A periodic payment made to use a property or piece of equipment owned by another party.

Unavoidable

Refers to events or outcomes that cannot be prevented or avoided.

Effective Utilization

The degree to which a resource, such as equipment or labor, is used effectively to produce goods or services.