In 2016,Steve Purchases $975,000 of Equipment

question 59

Multiple Choice

In 2016,Steve purchases $975,000 of equipment.The taxable income of the business is $10,000.What is Steve's maximum Section 179 deduction in 2016?

• A)$10,000
• B)$- 0 -
• C)$25,000
• D)$975,000
• E)$500,000

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Definitions:

Net Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health and liquidity.

Cash Receipts

The total amount of money received by a company during a given period, from its various sources of income including sales, interest, dividends, and other revenues.

Accounting Sales

Refers to the revenue generated from the sale of goods or services, recognized in the financial statements of a company.