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:

Activity At Capacity

The level of operations where a company or a production process is utilizing all available resources without any waste.

Fixed Manufacturing Overhead

Indirect manufacturing costs that do not change with the level of production, such as salaries of managers and depreciation of factory equipment.

Estimated Labor-Hours

A projection of the total hours of work required to complete a task or project.

Variable Manufacturing Overhead

The indirect, variable costs associated with manufacturing a product, which change in proportion to production volume.