Belsap Inc

Multiple Choice

Belsap Inc., a calendar year taxpayer, purchased a total of $519,000 depreciable personalty during May 2013. Which of the following statements is true?

A) Belsap can elect to expense 50% ($259,500) of the cost.
B) The amount of cost that Belsap can elect to expense depends on Belsap's 2013 taxable income.
C) Belsap can elect to expense $500,000 of the cost.The $19,000 remaining cost is capitalized and subject to 50% bonus and MACRS depreciation.
D) Belsap can elect to expense $500,000 of the cost.The $19,000 remaining cost is capitalized and is not depreciable.