64. 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. Acorn provided you with the following information:

Asset Placed in Service Basis New equipment and tools August 20 $1,800,000 Used light duty trucks October 17 1,500,000 Used machinery November 6 525,000 Total $3,825,000 The used assets had been contributed to the business by its owner in a tax-deferred transaction.

a. What is Acorn’s maximum cost recovery deduction in the current year?

b. What planning strategies would you advise Acorn to consider?