Kakao Incorporated acquires and places in

service a brand new super computer on March

7, 2020 at a cost of $2,700,000. It does not

purchase or place into service any other assets

during the year.

The corporation elects to expense the maximum

amount allowable under IRC Section 179 but

elects out of any potential first-year bonus

depreciation.

The corporation has taxable income, before any

IRC Sect. 179 deduction, of $7.8 million for the

year.

What is the total amount of cost recovery

deductions that the corporation can take on

the super computer, if any for 2020 and

2021?