Problem:
Tadpole Corporation, a calendar-year tax payer, purchased and places into service machinery with a 7-year life that costs $518,000. The mid-quarter convention does not apply, and the property is not eligible for bonus depreciation. Tadpole elects to depreciate the maximum under Sec. 179. Tadpole's taxable income for the year before the section 179 deduction is $550,000.
Required:
Question: What is Tadploe's total depreciation deduction related to this property?
- $74,022
- $125,000
- $500,000
- $502,572
Note: Please provide step by step solution.