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

Multiple Choice

Augie purchased one new asset during the year (five-year property) on November 10,2014,at a cost of $650,000.She would like to use the § 179 election 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 2014.

A) $32,500
B) $56,250
C) $130,000
D) $150,000
E) None of these