Terra Corporation,a Calendar-Year Taxpayer,purchases and Places into Service Machinery with a 7-Year

Multiple Choice

Terra Corporation,a calendar-year taxpayer,purchases and places into service machinery with a 7-year life that cost $640,000.Neither the mid-quarter convention,nor bonus depreciation apply.Terra elects to depreciate the maximum under Sec.179.Terra's taxable income for the year before the Sec.179 deduction is $700,000.What is Terra's total depreciation deduction related to this property (rounded to the nearest dollar) ?

A) $640,000
B) $520,006
C) $91,416
D) $591,416