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In November of This Year, Creative Corn Products, a Calendar

Question 26

Multiple Choice

In November of this year, Creative Corn Products, a calendar year taxpayer, placed in service its only equipment purchased during the year.The equipment cost $700,000.All of the equipment qualified as five-year property under MACRS.Ignore bonus depreciation.The maximum deduction that the taxpayer may claim with respect to the equipment is


A) $35,000
B) $87,500
C) $125,000
D) $240,000
E) $140,000

Correct Answer:

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