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, 2017, at a cost of $660,000. She would like to use the § 179 election and will also take additional first-year depreciation. 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 2017.

A) $30,500
B) $320,250
C) $510,000
D) $588,750
E) None of the above