Section 179
Response to the following problem:
Sand Corporation purchases one asset in 2014-used machinery costing $209,000. The machine was placed in service on June 2, 2014. Sand wants to elect the maximum Section 179 possible, even if some must be carried over to 2015. Sand's 2014 taxable income before Section 179 expense (but after all other expenses, including depreciation) is $3,000.
a. Compute the maximum Section 179 Sand can elect in 2014 and the Section 179 carryover to 2015
b. Compute the maximum total depreciation on the machine for 2014.