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In May 2016,Preston Purchases 5-Year MACRS Property Costing $150,000 and 7-Year

Question 15

Multiple Choice

In May 2016,Preston purchases 5-year MACRS property costing $150,000 and 7-year MACRS property costing $60,000.Preston's income is $100,000.If Preston wishes to maximize his total 2016 cost recovery deduction,what will his total cost recovery deduction be on the properties purchased in 2016?


A) $100,000
B) $150,000
C) $250,000
D) $42,000
E) $34,430

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