Ilene Owns an Unincorporated Manufacturing Business

Multiple Choice

Ilene owns an unincorporated manufacturing business.In 2016,she purchases and places in service $2,016,000 of qualifying five-year equipment for use in her business.The property does not qualify for bonus depreciation.Her taxable income from the business before any Sec.179 deduction is $400,000.Elaine takes the maximum allowable deduction under section 179.Which of the following statements is true regarding the Sec.179 election?

A) Ilene can deduct $500,000 as a section 179 deduction in 2016,with no carryover to next year.
B) Ilene can deduct $494,000 as a section 179 deduction in 2016,with a $6,000 carryover to next year.
C) IIene can deduct $400,000 as a section 179 deduction in 2016;$94,000 may be carried over to next year.
D) Ilene can deduct $400,000 as a section 179 deduction in 2016 ,with no carryover to next year.