At the beginning of its 2017 tax year, Hiram owned the following business assets: Date Placed in Service Initial Cost Accumulated Depreciation Recovery Period Depreciation Convention Furniture 6/19/15 $38,750 $15,027 7-year Half-year Equipment 5/2/14 71,750 51,086 5-year Half-year Machinery 9/30/14 79,750 56,782 5-year Half-year On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $596,000; these tools are three-year recovery property. These were Hirams only capital transactions for the year. Compute Hirams maximum cost recovery deduction for 2017. In making your computation, assume that taxable income before depreciation exceeds $1,570,000. Use Table 7-2.

Furniture	$ 6,777 Correct
Equipment used 11.52%	8,266 Incorrect
Machinery	9,187 Correct
Tools used 33% (596,000-510,000)	28,664 Incorrect
Total MACRS Depreciation	$ 52,894
Section 179	510,000 correct
Bonus depreciation	0 Incorrect
Total 2017 cost recovery	$ 562,894