Kemp Inc, a Calendar Year Taxpayer, Generated Over $10 Million Taxable

Multiple Choice

Kemp Inc., a calendar year taxpayer, generated over $10 million taxable income in 2014. Kemp made one asset purchase: manufacturing equipment costing $543,600. The equipment has a 7-year recovery period and was placed in service on June 14. Assuming that Kemp made the Section 179 election with respect to the equipment, compute Kemp's 2014 cost recovery deduction.

A) $543,600
B) $524,915
C) $506,230
D) None of the above