Problem 10-63 (LO 10-2, LO 10-3)

Acorn Construction (calendar year-end C-corporation) has had rapid expansion during the last half of the current year due to the housing market's recovery. The company has record income and would like to maximize its cost recovery deduction for the current year. (Use MACRS Table 2,)

Asset	Placed in Service	Basis
New equipment and tools	August 20	$	800,000
Used light duty trucks	October 17		1,200,000
Used machinery	November 6		525,000
Total		$	2,525,000

a.	What is Acorns maximum cost recovery deduction in the current year assuming that bonus depreciation and 2014 179 limits are extended to 2015?

Maximum total depreciation expense?