A taxpayer purchased and placed in service a $690,000 piece equipment in 2016, and elected to expense the maximum allowable amount under IRC Sec. 179. This equipment was the only tangible depreciable personal property the taxpayer placed in service during 2016. The equipment is 7-year property. Before considering any depreciation deduction, the taxpayer had $700,000 of taxable income. The taxpayer elected out of bonus depreciation. What is the maximum allowable depreciation deduction in 2016.

a. $98,601

b. $500,000

c. $527,151

d. $690,000