Belsap Inc

Multiple Choice

Belsap Inc., a calendar year taxpayer, purchased a total of $59,000 depreciable personalty during May 2015. 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 2015 taxable income.
C) Belsap can elect to expense $25,000 of the cost. The $34,000 remaining cost is capitalized and subject to MACRS depreciation.
D) Belsap can elect to expense $25,000 of the cost. The $34,000 remaining cost is capitalized and is not depreciable.