On May 11, 2018, your calendar year firm purchases for $10,000 a machine with an estimated salvage value of $1,000. If the machine is the only fixed asset purchased in 2018 and no Sec. 179 deduction is taken, what is your firms maximum 2018 deduction for depreciation?

Depreciation of fixed assets under GAAP v. for tax purposes is based on:

a. original cost less salvage value under GAAP v. original cost for tax purposes.

b. original cost for GAAP v. the original cost less salvage value for tax purposes.

c. original cost less the salvage value both under GAAP and for tax purposes.

d. original cost both under GAAP and for tax purposes.