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On March 1, 2017 Harry Corporation (a calendar – year tax payer) purchased and placed in...

On March 1, 2017 Harry Corporation (a calendar – year tax payer) purchased and placed in service office furniture costing $550,000. Compute the maximum amount Harry Corporation can elect to expense under Section 179 for this furniture if

  1. This is the only asset placed in service this year by Harry Corporation
  2. In addition to the $550,000 of office furniture, Harry Corporation also acquired and placed in service $980,000 of factory equipment during the year.
  3. In addition to the $550,000 of office furniture, Harry Corporation also acquired and placed in service $1,890,000 factory equipment during the year.
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Answer #1
This is the only asset placed in service this year:
Section 179 deduction 500000
in addition to the $550,000 of office furniture, Harry Corporation also acquired and placed in service $980,000 of factory equipment :
Section 179 deduction 500000
in addition to the $550,000 of office furniture, Harry Corporation also acquired and placed in service $1,890,000
Section 179 deduction = 500000-(550000+1850000-2000000)= 100000
As the property purhased is more than $2000000 so Section 179 deduction is reduced by any amount in excess of 2000000
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