Aviation Corp. manufactures model airplanes for children. During 2011, Aviation purchased $820,000 of production machinery to be used in its business. For 2011, Aviation's taxable income before any Sec. 179 expense deduction was $195,000. What is the maximum amount of Sec. 179 expense election Aviation will be allowed to deduct for 2011 and the maximum amount of Sec. 179 expense election that can carryover to 2012?

Aviation Corp. manufactures model airplanes for children. During 2011, Aviation purchased $820,000 of production machinery to be used in its business. For 2011, Aviation's taxable income before any Sec. 179 expense deduction was $195,000. What is the maximum amount of Sec. 179 expense election Aviation will be allowed to deduct for 2011 and the maximum amount of Sec. 179 expense election that can carryover to 2012?

Aviation Corp. manufactures model airplanes for children. During 2011, Aviation purchased $820,000 of production machinery to be used in its business. For 2011, Aviation's taxable income before any Sec. 179 expense deduction was $195,000. What is the maximum amount of Sec. 179 expense election Aviation will be allowed to deduct for 2011 and the maximum amount of Sec. 179 expense election that can carryover to 2012?


a) Expense Carryover
$195,000 $305,000
b) Expense Carryover
$195,000 $55,000
c) Expense Carryover
$500,000 $0
d) Expense Carryover
$820,000 $0


Answer: a) Expense Carryover
$195,000 $305,000


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