Szabi Inc, a Calendar Year Taxpayer, Purchased Two Assets During 2017

Multiple Choice

Szabi Inc., a calendar year taxpayer, purchased two assets during 2017: a machine costing $380,000 and computer equipment costing $403,500. The machine is 7-year recovery property and the computer equipment is 5-year recovery property. Which of the following statements is true? 

A)  Under Section 179, Szabi should elect to expense the $380,000 cost of the machine and $130,000 of the cost of the computer equipment.
B)  Under Section 179, Szabi should elect to expense the $403,500 cost of the computer equipment machine and $106,500 of the cost of the machine.
C)  Under Section 179, Szabi must elect to expense $255,000 of the cost of the machine and $255,000 of the cost of the computer equipment.
D)  Under Section 179, Szabi is indifferent as to which costs to expense.