need help with homework

Question

On July 20, 2015, Kelli purchases office equipment at a cost of $12,000. Kelli elects out of bonus depreciation but makes the election to expense for 2015. She is self-employed as an attorney and in 2015 her business had a net income of $3,000 before considering this election to expense. Kelli has no other income or expenses for the year.

What is the maximum amount that Kelli may deduct for 2015 under the election to expense assuming she elects to expense the entire $12,000 purchase?

 

Can you help me understand what this is saying.

Answer 1

The US tax law is that the amount allowed as a deduction shall not exceed the taxable income.

 

So, the maximum amount she may deduct is $3000