Drew Corporation purchased machinery costing $825,000 in 2018. Drew paid $5,000 for installation and testing of the machinery. Under a special election, Drew expensed $500,000 of the cost of the machinery in 2018. Drew also deducted depreciation on the machinery of $46,443 in 2018 and $79,593 in 2019. Drew's repair and maintenance costs on the machinery were $10,200 in 2018 and $13,300 in 2019. What is Drew Corporation's adjusted basis in the machinery at the end of 2019?
A. $175,468
B. $198,964
C. $203,964
D. $325,000
E. $698,964
Answer: C
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