During 2011, Belk Corporation purchases $70,000 worth of equipment for use in its business. Belk's current taxable

Question:

During 2011, Belk purchases $70,000 worth of equipment for use in its business. Belk's current taxable income before considering the Section 179 deduction is $26,000. Assume that Belk elects not to claim bonus depreciation.
a. What is Belk's maximum Section 179 deduction in 2011? Explain.
b. Belk's 2012 business taxable income-before a Section 179 deduction-is $50,000. What is Belk's maximum Section 179 deduction in 2012? Explain.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...