Terra Corporation, a calendar-year taxpayer, purchases and places into service machinery with a 7-year life that costs $1,140,000. It was placed in service early in the year and was the only addition this year. Terra elects to depreciate the maximum under Sec. 179 and does not apply bonus depreciation. Terra's taxable income for the year before the Sec. 179 deduction is $1,700,000. What is

Terra's total depreciation deduction related to this property?

A) $1,140,000
B) $1,020,006
C) $162,906
D) $1,028,000


B) $1,020,006





Business

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