Pyle Inc, a Calendar Year Taxpayer, Generated Over $10 Million Taxable

question 39

Multiple Choice

Pyle Inc., a calendar year taxpayer, generated over $10 million taxable income in 2018. Pyle made one asset purchase: new heating and air conditioning system for existing nonresidential real property at a cost of $1,322,000. The system has a 39-year recovery period and was placed in service on February 9. Assuming that Pyle made the Section 179 election with respect to the acquisition, compute Pyle's 2018 cost recovery deduction. 

• A) $1,000,000
• B) $1,007,226
• C) $1,008,256
• D) $1,322,000

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