On June 1, 2012, Sam purchased new farm machinery for $150,000.Sam used the machinery in connection with his farming business.Sam does not elect to expense assets under § 179.Sam has, however, made an election to not have the uniform capitalization rules apply to the farming business. Sam does not take additional first-year depreciation. Determine the cost recovery deduction for 2012.
A)$5,000.
B)$7,500.
C)$10,000.
D)$12,500.
E)None of the above.

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The Answer of On June 1, 2012, Sam purchased new farm machinery for $150,000.Sam used the machinery in connection with his farming business.Sam does not elect to expense assets under § 179.Sam has, however, made an election to not have the uniform capitalization rules apply to the farming business. Sam does not take additional first-year depreciation. Determine the cost recovery deduction for 2012.
A)$5,000.
B)$7,500.
C)$10,000.
D)$12,500.
E)None of the above.

On June 1, 2012, Sam Purchased New Farm Machinery for $150,000.Sam