At the beginning of its 2023 tax year, Hiram owned the following business assets:

On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $589,000; these tools are three-year recovery property. These were Hiram’s only capital transactions for the year. Compute Hiram’s maximum cost recovery deduction for 2023. In making your computation, assume that taxable income before depreciation exceeds $2,000,000. 

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Furniture Equipment Machinery Date Placed in Service 6/19/21 5/2/20 9/30/20 Initial Cost $30,750 70,000 58,000 Accumulated Recovery Depreciation Period $11,925 49,840 41,296 7-year 5-year 5-year Depreciation Convention Half-year Half-year Half-year