Sam purchased new farm machinery for $150,000. Sam used the machinery in connection with his farming business. Sam does not elect to expense assets under IRS Code 179. Sam has, however, made an election to not have the uniform calculation rules apply to the farming business. Sam does not take additional first year depreciation. Determine the cost recovery deduction for 2012.

a. 10,000

b. 12,500

c. 5,000

d. 7,500

e. None of the above