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. Required: 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 purchased in 2021 instead of 2017?

Tabele 2 rates are: year 1 14.29% Year 2 24.49% year 3 17.49% year 4 12.49% year 5 8.93% year 6 8.92% year 7 8.93% year 8 4.46%