Determine the total cost recovery deductions

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Question - Tan Company acquired a new machine (five-year property) on January 15, 2018, at a cost of $40,000. Tan also acquired another new machine (five-year property) on November 5, 2018, at a cost of $200,000. Both assets were placed in service immediately, and Tan acquired no other assets during the year. No election was made to use the straight-line method. The company did not make the IRC § 179 election and elected not to take additional first-year depreciation. Determine the total cost recovery deductions in calculating taxable income related to the machines for the calendar 2019 taxable year.

a. $24,000

b. $25,716

c. $45,716

d. $48,000

e. $86,400

Reference no: EM132975213

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