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?

a. $10,000

b. $6,000

c. $2,000

d. $5,715

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 and the firm elects out of 100% bonus, what is your firms maximum 2018 deduction for depreciation?

a. $6,000

b. $1,429

c. $2,000

d. $5,715