On June 2, 2016, Lokar Corporation purchases a patent for $68,000 from the inventor of a new extrusion process. The patent has 12 years remaining on its legal life. Also, Lokar purchases substantially all of the assets of Barrios Corporation for $750,000 on September 8, 2016. The values of the assets listed in the purchase agreement are as follows:

Inventory .............................................. $250,000

Manufacturing equipment ........................... 686,000

Patent on compression process ...................... 105,000

Goodwill ................................................. 95,000

Determine the maximum 2016 cost-recovery deductions for the assets purchased.