At the beginning of its 2016 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 $598,000; these tools are three-year recovery property. These were Hiram’s only capital transactions for the year. Compute Hiram’s cost recovery deduction for 2016. In making your computation, assume that taxable income before depreciation exceeds $1,590,000.

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Furniture Equipment Machinery Date Placed in Service 6/19/14 5/2/13 9/30/13 Initial Cost $30,750 70,000 58,000 Accumulated Depreciation $11,925 49,840 41,296 Recovery Period 7-year 5-year 5-year Depreciation Convention Half-year Half-year Half-year Furniture Equipment Machinery Date Placed in Service 6/19/14 5/2/13 9/30/13 Initial Cost $30,750 70,000 58,000 Accumulated Depreciation $11,925 49,840 41,296 Recovery Period 7-year 5-year 5-year Depreciation Convention Half-year Half-year Half-year

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Initial Cost Basis Recovery Period Year Recovery Per... View the full answer