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	$38,500	$14,930	7-year	Half-year
Equipment	5/2/18	72,750	51,798	5-year	Half-year
Machinery	9/30/18	65,750	46,814	5-year	Half-year

On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $611,000; 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 $1,220,000. Use Table 7-2. (Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dollar amount.)

TABLE 7.2 MACRS for Business Personalty (Half-Year Convention) Year 3-Year 5-Year 15-Year 20-Year 33.33% 44.45 14.81 7.41 1 2 3 4 5 6 7 8 9 10 20.00% 32.00 19.20 11.52 11.52 5.76 Recovery Period 7-Year 10-Year Depreciation Rate 14.29% 10.00% 24.49 18.00 17.49 14.40 12.49 11.52 8.93 9.22 8.92 7.37 8.93 6.55 4.46 6.55 6.56 6.55 3.28 5.00% 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 11 3.750% 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 12 5.90 5.91 5.90 5.91 5.90 5.91 2.95 13 14 15 16 17 18 19 20 21 At the beginning of its 2021 tax year, Hiram owned the following business assets: Furniture Equipment Machinery Date Placed in Initial Cost Service 6/19/19 $38,500 5/2/18 72,750 9/30/18 65,750 Accumulated Depreciation $14,930 51,798 46,814 Recovery Period 7-year 5-year 5-year Depreciation Convention Half-year Half-year Half-year On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $611,000; these tools are three-year recovery property. These were Hiram's only capital transactions for the year. Required: Compute Hiram's maximum cost recovery deduction for 2021. In making your computation, assume that taxable income before depreciation exceeds $1,220,000. Use Table 7-2. (Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dollar amount.) 2021 Depreciation Furniture Equipment Machinery Total MACRS Depreciation Section 179/bonus on new tools 0 Maximum 2021 cost recovery deduction A 0