Convention At the beginning of its 2021 tax year, Hiram owned the following business assets: Date Placed in Initial Cost Accumulated Recovery Depreciation Service Depreciation Period Furniture 6/19/19 $41,500 $16,094 7-year Half-year Equipment 5/2/18 80,500 57,316 5-year Half-year Machinery 9/30/18 55,750 39,694 5-year Half-year On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $601,000; 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 $1120,000. 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 now tools Maximum 2021 cost recovery deduction TABLE 7.2 MACRS for Business Personalty (Half-Year Convention) Year 3-Year 5-Year 15-Year 20-Year 1 2 3 4 5 33.33% 44.45 14.81 7.41 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 7 8 5.00% 9.50 8.55 7.70 6.93 6.23 5.90 5.90 5.91 5.90 5.91 5.90 5.91 5.90 5.91 2.95 9 10 11 12 13 14 15 16 17 18 19 20 21 6.55 3.28 3.7509 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