Sophie owns an unincorporated manufacturing business. In 2018, she purchases and places in service $2,507,000 of qualifying five-year equipment for use in her business. Her taxable income from the business before any Sec. 179 deduction is $940,000. Sophie elects to expense the maximum under Sec. 179 and does not apply bonus depreciation. What is Sophie's maximum total cost recovery deduction for 2018?

A. $1,242,800
B. $1,301,400
C. $993,000
D. $940,000


Answer: A

Business

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