Cruz Corporation, a calendar year, accrual method C-corporation, purchased and placed in service (PIS) the following new assets on the following dates:

PIS Date 3/20/2020 7/15/2020 9/14/2020

Asset Computers Gen. manufacturing equipment Manufacturing building

Cost $500,000 $2,300,000 $9,000,000

Cruz Corporation purchased no other assets during 2020, and its net income for 2020 is $30,000,000 before taking cost recovery deductions into account.

1. What is the maximum federal cost recovery deduction Cruz Corporation may take in 2020, assuming the company elects 179 expense and elects out of bonus depreciation? Please show your work and explain your calculations. (8 points)