Acorn Construction (calendar year-end C-corporation) has had rapid expansion during the last half of the current year due to the housing market's recovery. The company has record income and would like to maximize its cost recovery deduction for the current year. (Use MACRS Table 2,)

Asset Placed in Service Basis New equipment and tools August 20 $ 800,000 Used light duty trucks October 17 $ 1,200,000 Used machinery November 6 $ 525,000 Total $ 2,525,000

a. What is Acorns maximum cost recovery deduction in the current year assuming that bonus depreciation and 2014 179 limits are extended to 2015?

Hint: I would say to start with bonus depreciation on the new equipment, remember the 179 deduction might not be available because they bought more assets than the limit, also remember the mid quarter convention might apply on the depreciation