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. (UseMACRSTable 1,Table 2,Table 3,Table 4andTable 5.)(Round your answer to the nearest whole dollar amount.)a.What is Acorn?s maximum cost recovery deduction in the current year? the answer is not 687500, not 1775000

Acorn provided the following information:

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 Acorn?s maximum cost recovery deduction in the current year?

TABLE 23 MAtI-t Mid-Duortor Convention: For property pieced in service during the first querter Depreciation Rate for Recovery Period 'i'nr E-ynr T-yonr 1 35.0053 25.0035 2 25.00 21.43 3 15.50 15.31 4 11.01 10.33 5 11.01 3.?5 5 1.33 3.?4 ? 3.?5 3 1.03 TABL E 2') Nina-15 Mid-Dunner Convention: For property pieced in service during the second querter Depreciation Rate for Recovery Period 'iha r E-yoar 'i-yolr 1 25.00% 113535 2 30.00 23.4? 3 13.00 15.?5 4 11.3? 11.3? 5 11.3? 3.3? 5 425 3.3? ? 3.3? 3 3.34 TABL E 20 MAGRE Mid-Duo rtor Convention: For property pieced in service during the third querter Depreciation Rate for Recovery Period You E-yoar 1er 1 15.0055 10.?135 2 3400 25.51 3 20.40 13.22 4 12.24 13.02 5 11.30 3.30 5 ?.05 3.35 ? 3.35 3 5.53 TABLE 21:] MAWE-Mid Quarter Convention: For property pieced in service during the fourth quarter Depreciation Rate for Recovery Period Your E-yoar 'i-ynlr 1 5.00% 3.5?35 2 33.00 2?.55 3 22.30 13.53 4 13.53 1405 5 10.34 10.04 5 3.53 3.?3 ? 3.?3 3 ?.54