Answer:
The correct answer is "600000".
Explanation:
The values provided are:
Cost of office furniture,
= $100,000
Cost of the computer system,
= $500,000
- The revised MACRS allows a corporation to gradually reduce the mortgage balance of such depreciating assets.
- In the initial years, MACRS permits accelerated depreciation but then slows down the process. This is advantageous for businesses from a taxation perspective.
Now,
The cost recovery deduction is calculated as:
= 
Substituting the values gives us
= 
= 