Browne, a self-employed taxpayer, has 2015 business net income of $15,000 prior to any expense deduction for

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Question:

Browne, a self-employed taxpayer, has 2015 business net income of $15,000 prior to any expense deduction for equipment purchases. In 2015, Browne purchases and places into service, for business use, office machinery costing $20,000. This is Browne's only 2015 capital expenditure.

Browne's business establishment is not in an economically distressed area. Browne makes a proper and timely expense election to deduct the maximum amount (assumed to be $25,000 ignoring bonus depreciation). Browne is not a member of any pass-through entity.

What is Browne's deduction under the election?

A. $4,000

B. $10,000

C. $15,000

D. $20,000