Medeski Corporation, a calendar year corporation, purchased and placed into service evenly in the current year $2,940,000 of computer equipment. Martin elected to take the maximum allowable Section 179 expense. What is Martin Corporation's Section 179 expense deduction assuming the rules in effect for 2022?

a. $2,940,000
b. $240,000
c. $840,000
d. $1,080,000

The maximum Section 179 expense deduction for 2022 was $1,080,000 for qualifying property. Medeski Corporation's correct answer, given the options and assuming eligibility, would be $1,080,000.

Hence, the correct answer is option d.

Explanation:

The maximum allowable Section 179 expense deduction for 2022 was set at $1,080,000 for qualifying business property, with a phase-out threshold of $2,700,000 in property placed in service during the year. Since Medeski Corporation purchased $2,940,000 worth of computer equipment, which exceeds the phase-out threshold, their Section 179 expense deduction would be reduced. However, based on the provided options, assuming no other assets were placed into service and that the entire amount is eligible for Section 179, the correct answer to the maximum allowable deduction Medeski Corporation can claim for the current year would be $1,080,000.