Ask Question
21 August, 16:38

Rex's Wrecks purchased $150,000 in new equipment during the current year. Rex used Section 179 to expense the maximum amount of the purchase. From the following choices, how much did Rex get to expense under Sec. 179, assuming the gross income from his business is $1,200,000 and his expenses (including MACRS depreciation) other than Section 179 were $1,150,000

+3
Answers (1)
  1. 21 August, 18:09
    0
    It will depreciate the new equipment for 50,000 dollars

    Explanation:

    It can depreciate another 50,000 dollar as the 179 S doesn't allow for a depreication that can generate a net loss.

    If Rex depreciate the entire 150,000 dollars their net income of 50,000 will swing into a loss of 100,000 That is not allowed. Thus, the aximum amount available for Rex is 50,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Rex's Wrecks purchased $150,000 in new equipment during the current year. Rex used Section 179 to expense the maximum amount of the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers