Problem $07-22($Static$)[$LO $7-5,7-7]$

Margo, a calendar year taxpayer, paid $$1,580,000$ for new machinery $($seven$-$year recovery property$)$ placed in service on August $1,2023.$ Use Table $7-2.$

Required:

Assuming that the machinery was the only tangible property placed in service during the year, compute Margo$$s maximum cost recovery deduction. Note that for $2023$ the maximum Section $179$ deduction was $$1,160,000.$

How would your computation change if Margo paid $$3,100,000$ for the machinery? Note that for $2023$ the Section $179$ deduction threshold amount was $$2,890,000.$

How would your computation change if Margo paid $$4,750,000$ for the machinery?

How would your answer to part $($a$)$ change if the machinery was purchased in $2022$ instead of $2023?$

Note: For all requirements, round your intermediate computations to the nearest whole dollar amount.

Amount

a$.$ deduction

b$.$ deduction

c$.$ deduction

d$.$ deduction