Augie Purchased One New Asset During the Year (Five-Year Property)

Multiple Choice

Augie purchased one new asset during the year (five-year property) on November 10,2015,at a cost of $650,000.She would like to use the § 179 election and will also take additional first-year depreciation,if available.The income from the business before the cost recovery deduction and the § 179 deduction was $600,000.Determine the total cost recovery deduction with respect to the asset for 2015.

A) $22,500
B) $154,550
C) $500,000
D) $600,700
E) None of the above