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 $125,000.The mid-quarter convention does not 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?

A) $17,863
B) $42,863
C) $25,000
D) $39,290