At the beginning of its 2017 tax year, Hiram owned the following business assets:

On July 8, Hiram sold its equipment. On August 18, it purchased and placed in service new tools costing $589,000; these tools are three-year recovery property. These were Hiram's only capital transactions for the year. Compute Hiram's maximum cost recovery deduction for 2017. In making your computation, assume that taxable income before depreciation exceeds $1,500,000.

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Recovery Perlod Depreciation Convention Date Placed In Service Accumulated Depreciation Initial Cost Furniture $11,925 49,840 41,296 7-year 5-year 5-year Half-year Half-year Half-year 6/19/15 5/2/14 9/30/14 $30,750 Equipment Machinery 70,000 58,000