What amount is the maximum allowable depreciation deduction

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A taxpayer purchased and placed into service a $690,000 piece of equipment in a year with a maximum allowable section 179 amount of $500,000 and a ceiling of $2,000,000 of qualifying property. The equipment is 7-year property. The first-year depreciation for 7-year property is 14.29%. Before considering any depreciation deduction, the taxpayer had $700,000 of taxable income. The taxpayer elected out of any bonus depreciation. What amount is the maximum allowable depreciation deduction?

$527,151

$98,601

$690,000

$500,000

Reference no: EM131648003

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