Margo, a calendar year taxpayer, paid $580,000 for new machinery (seven-year recovery property) placed in service on August 1, 2017. Use Table 7-2. Assuming that the machinery was the only tangible property placed in service during the year, compute Margos maximum cost recovery deduction.

How would your computation change if Margo paid $2,100,000 for the machinery?

How would your computation change if Margo paid $2,750,000 for the machinery?

How would your answer to part a change if the machinery was used instead of new?

TABLE 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period ear | 3-year | 5-year | 7-year | 10-year | 15-year | 20-year 33.33 4.45 14.81 7.41 20.00 32.00 19.20 11.52 11.52 5.6 123456789pm2 14.29 24.49 17.49 12.49 8.93 8.92 8.93 4.46 10.00 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.8 6.55 3.28 W 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 3.750 7.219 6.677 6.177 5.713 5.28 4.888 4.522 4.462 4.461 4.462 4.61 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231 14 15 BBa