Which of the Following Statements Related to the Section 179

question 36

Multiple Choice

Which of the following statements related to the Section 179 election to expense is (are) true?
I.A Section 179 deduction can be claimed on tangible personal property
II.A Section 179 deduction can be claimed on property held for the production of income.
III.A Section 179 deduction can be claimed on real property.
IV.A Section 179 deduction is allowed only for assets used in trade or business.
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• A)Only statement I is true.
• B)Only statements I and II are true.
• C)Only statements I, II, and III are true.
• D)Only statements I and IV are true.
• E)All of the statements are true.

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Definitions:

Income Statement

A financial statement that reports a company's revenues, expenses, and net income or loss over a specific period.

Premium on Bonds Payable

An amount by which a bond's selling price exceeds its face value, indicating that the bond was issued at a price higher than its nominal value.

Straight-Line Method

A method of calculating depreciation of an asset, where the cost of the asset is evenly divided over its useful life.

Bond Premium

The surplus of a bond's market price over its nominal or face value.