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In March of the current year, Liloness, Inc., installed new ventilation, security, and fire protection systems in all of its production facilities (total cost of

In March of the current year, Liloness, Inc., installed new ventilation, security, and fire protection systems in all of its production facilities (total cost of $2,850,000). These were the only assets the company placed in service in the current year. Assume all are considered qualified property under Section 179, but not for bonus depreciation purposes.

Assume the companys taxable income before considering cost recovery deductions is $11,200,000. Calculate Lilonesss total cost recovery deductions in the current year, assuming the company makes all available elections to minimize current-year taxable income.

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