On June 1, 2012, Sam Purchased New Farm Machinery for $150,000.Sam

Multiple Choice

On June 1, 2012, Sam purchased new farm machinery for $150,000.Sam used the machinery in connection with his farming business.Sam does not elect to expense assets under § 179.Sam has, however, made an election to not have the uniform capitalization rules apply to the farming business. Sam does not take additional first-year depreciation. Determine the cost recovery deduction for 2012.

A) $5,000.
B) $7,500.
C) $10,000.
D) $12,500.
E) None of the above.