An Asset (Not an Automobile)placed in Service in June 2017

Multiple Choice

An asset (not an automobile) placed in service in June 2017 has a depreciable basis of $2,055,000,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 2017 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