Lori, who is single purchased 3-year class property for $100,000, 5-year property for $200,000 and 7-year class property for $400,000 on May 1, 2021. She doesnt want to claim any cost recovery deductions using additional first year depreciation or Section 179. Loris net income from her business for 2021 is $250,000.

1.Compute Loris MACRS cost recovery deduction for 2021.

2.Now assume that Lori wants to elect additional first year depreciation in addition to the MACRS cost recovery deduction computed in Part 1 above. Re-compute Loris cost recovery deduction for 2021, starting with the amount you calculated in Part 1 above.