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What is the maximum deduction the corporation can claim under Code Sec. 179 in 2011? During 2011, a corporation purchased machinery costing $450,000 and a warehouse costing $600,000. These are the only two acquisitions of depreciable property purchased by the corporation in 2011.



A. $100,000
B. $450,000
C. $250,000
D. $134,000

This question is part of Tax Accounting Practice Final
Asked by Leron, Last updated: Feb 13, 2020

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2 Answers

John Adney

John Adney

Answered Dec 05, 2016

Machinery of 450K and the warehouse of 600k = 1050,000 which does not exceed the 2M , so I am confused about the answer you gace of 450K, shouldn't it be the full allowable amount of 500K/
 

John Smith

John Smith

Answered Dec 06, 2016

$450,000

The Section 179 deduction is limited to $500,000 in 2011 or $450,000 in this case. It is reduced to the extent that acquisitions of eligible personal property exceed $2,000,000.
 

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