179 phase out

For you Reg buffs

A taxpayer purchased and placed in service during the year a $761,000 piece of equipment. The equipment is 7-year property. The first-year depreciation for 7-year property is 14.29%. There is an allowable Section 179 limit in 2014 of $25,000. What amount is the maximum allowable depreciation without using bonus depreciation?

A. 25000

B 105174

C 130174

D 108747

The answer is C. I thought that 179 was phased out after 200,000 dollar for dollar over 200k. This problem you include the 25k from 179 plus the remainder at 14.29%

Am I off base?

Thanks,