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At the beginning of its 2021 tax year, Hiram owned the following business assets: Date Placed in Service Initial Cost Accumulated Depreciation Recovery Period Depreciation

At the beginning of its 2021 tax year, Hiram owned the following business assets:

Date Placed in Service Initial Cost Accumulated Depreciation Recovery Period Depreciation Convention
Furniture 6/19/19 $28,250 $10,955 7-year Half-year
Equipment 5/2/18 91,500 65,148 5-year Half-year
Machinery 9/30/18 74,750 53,222 5-year Half-year

On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $607,000; these tools are three-year recovery property. These were Hirams only capital transactions for the year.

Required:

Compute Hirams maximum cost recovery deduction for 2021. In making your computation, assume that taxable income before depreciation exceeds $1,180,000. Use Table 7-2. (Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dollar amount.

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