A Taxpayer Places a $550,000 5-Year Recovery Period Asset in Service

Multiple Choice

A taxpayer places a $550,000 5-year recovery period asset in service in 2016. This is the only asset placed in service in 2016. Assuming half-year convention, an election to expense under Section 179, and no income limitation, what is the amount of total cost recovery deduction (no bonus depreciation) ?​

A) ​$10,000
B) ​$50,000
C) ​$500,000
D) ​$510,000
E) ​$550,000