Ralph Buys a New Truck (5-Year MACRS Property)to Use in His

Multiple Choice

Ralph buys a new truck (5-year MACRS property) to use in his landscaping business on May 13,2016,at a cost of $18,000.On November 5,2016,Ralph takes advantage of an end of the season clearance sale to purchase various landscaping equipment (7-year MACRS property) costing $34,000.Assuming that Ralph does not wish to immediately expense any of the cost of the property purchased this year,what is his 2016 maximum allowable cost recovery deduction?

A) $2,114
B) $5,714
C) $8,459
D) $2,086
E) $15,500