Belsap Inc

Multiple Choice

Belsap Inc., a calendar year taxpayer, purchased a total of $590,000 depreciable personalty during May 2020. Which of the following statements is true?

A) Belsap can elect to expense 100% of the cost.
B) The amount of cost that Belsap can elect to expense depends on Belsap's 2020 taxable income.
C) Belsap can elect to expense $510,000 of the cost. The $80,000 remaining cost is capitalized and subject to MACRS depreciation.
D) Belsap can elect to expense $510,000 of the cost. The $80,000 remaining cost is capitalized and is not depreciable.