On June 21, 2018, Duckwall Co. purchased and placed in service$3,185,000 of 5-year recovery property (not an SUV). It is used100% for business and Is the only property placed in service duringthe year.
What is the maximum cost recovery deduction available ifthe Duckwall Co.? has taxable income of $1.5 million before thecost recovery deduction?
The Duckwall Co. does not elect out of Section 179 expensing orthe additional first-year deprecation deduction.
A. $1,722,000
B. $3,185,000
C. $2,037,000
D. $1,500,000
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