Acorn Construction (calendar year-end C-corporation) has had rapid expansion during the last half of the current year due to the housing market's recovery. The company has record income and would like to maximize its cost recovery deduction for the current year. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Round your answer to the nearest whole dollar amount.)a. What is Acorn's maximum cost recovery deduction in the current year? the answer is not 687500, not 1775000
Acorn provided the following information:
| Asset |
Placed in Service |
Basis |
| New equipment and tools |
August 20 |
$ |
800,000 |
| Used light duty trucks |
October 17 |
|
1,200,000 |
| Used machinery |
November 6 |
|
525,000 |
| Total |
|
$ |
2,525,000 |