Davis,Inc ,A Motorcycle Wheel Manufacturer,purchased a New Spoke Machine in 2017

question 54

Multiple Choice

Davis,Inc. ,a motorcycle wheel manufacturer,purchased a new spoke machine in 2017 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 2017.
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 2017,the corporation can deduct none of the purchases in 2017 through use of the Section 179 election.
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• A)Only statement I is correct.
• B)Statements I and II are correct.
• C)Statements II and III are correct.
• D)Statements I and III are correct.
• E)Statements I,II,and III are correct.

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