Laven Company, a Calendar Year Taxpayer, Purchased a Total of $561,240

Multiple Choice

Laven Company, a calendar year taxpayer, purchased a total of $561,240 new depreciable personalty during 2016. Which of the following statements is true?

A) Laven can elect to expense $500,000 of the cost. The $61,240 remaining cost is capitalized and subject to 50% bonus and MACRS depreciation.
B) Laven can elect to expense $500,000 of the cost. The $61,240 remaining cost is capitalized and is not depreciable.
C) Laven can expense the entire $561,240 cost using 100% bonus depreciation.
D) The amount of the cost that Laven can elect to expense depends on Laven's 2016 taxable income.