Richards Corporation Reports Taxable Income Exceeding $1 Million Per Year

Multiple Choice

Richards Corporation reports taxable income exceeding $1 million per year.In 2016 it acquired and placed in service $1,600,000 of new equipment.The equipment,its only property addition this year,is five-year property and was shipped directly from the factory.What is the maximum tax deduction it can take this year with respect to this new equipment?

A) $1,160,000
B) $800,000
C) $720,000
D) $1,050,000