The Cupcakery is a chain of bakeries in the mid-Atlantic region of the U.S. thatoperates using on a calendar-year basis. Assume the net profit (loss) for the Cupcakery in 2019 before incorporating any depreciation deduction is $300,000 of net profit. In addition, assume the only tangible personal property the company still owns in 2019 is a large amount of equipment that it had purchased on May 5, 2017 for $600,000, which has been used each year to make its cupcakes. In the year in which it acquired the equipment, the Cupcakery opted not to take any Sec. 179 on the equipment and no other tangible personal was purchased throughout 2017. However, the company did apply bonus depreciation to the equipment in 2017. The bonus depreciation % allowed in 2017 for this property was50% (different from the % allowed in 2019).

What is the net profit (loss) for 2019 after including the relevant total depreciation deduction for year 2019?

I.$184,800 net profit

II.$195,060 net profit

III.$242,400 net profit

IV.$247,530 net profit.

V.None of the above