Question: At the beginning of its 2015 tax year Hiram owned
At the beginning of its 2015 tax year, Hiram owned the following business assets:
On July 8, Hiram sold its equipment. On August 18, it purchased and placed in ser-vice new tools costing $89,000; these tools are three-year recovery property. These were Hiram’s only capital transactions for the year. Compute Hiram’s cost recovery deduction for 2015. In making your computation, assume that taxable income before depreciation exceeds $500,000.
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