​An Asset (Not an Automobile) Placed in Service in June

Multiple Choice

​An asset (not an automobile) placed in service in June 2016 has a depreciable basis of $2,035,000, a recovery period of 5 years, and is the only asset placed in service during the year. Assuming bonus depreciation is used, a half-year convention, and the expensing election is made for the maximum eligible amount, what is the amount of cost that can be deducted in 2016 assuming the business earned taxable income of $1,000,000 before deducting any cost recovery?

A) ​$407,000
B) ​$500,000
C) ​$1,000,000
D) ​$1,407,000
E) ​$2,000,000