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Amway Corporation acquires a used desk on December 26, 2019, and places the desk in service on February 2, 2020 at a cost of $15,000.
Amway Corporation acquires a used desk on December 26, 2019, and places the desk in service on February 2, 2020 at a cost of $15,000. It does not purchase or place into service any other assets during either 2019 or 2020. The corporation does not elect IRC Section 179 and elects out of first-year bonus depreciation. The corporation has taxable income, before any IRC Sect. 179 deduction, of $3.1 million for the year. What is the total amount of cost recovery deductions that the corporation can take on the desk, if any, for 2019, 2020 and 2021?
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