Szabi Inc,A Calendar Year Taxpayer,purchased Two Assets During 2017: a Machine

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