Acorn Contruction ( calender - 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 , 2 , 3 , 3 and 5 ) Acorn provided you with the following information Asset new equipment and tools placed in service August 2 0 Basis $ 3 , 8 0 0 , 0 0 0 asset used light - duty trucks placed in service October 1 7 Basis 2 , 0 0 0 , 0 0 0 asset used Machinery placed in service November 6 Basis $ 1 , 5 2 5 , 0 0 0 total Basis $ 7 , 3 2 5 , 0 0 0 the used assers had been contributed to the business by its owner in a tax - deferred transaction two years ago. A ) what is Acorn's maximum cost recovery deduction in the current year?
Acorn Contruction
(
calender
-
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
,
2
,
3
,
3
and
5
)
Acorn provided you with the following information Asset new equipment and tools placed in service August
2
0
Basis $
3
,
8
0
0
,
0
0
0
asset used light
-
duty trucks placed in service October
1
7
Basis
2
,
0
0
0
,
0
0
0
asset used Machinery placed in service November
6
Basis $
1
,
5
2
5
,
0
0
0
total Basis $
7
,
3
2
5
,
0
0
0
the used assers had been contributed to the business by its owner in a tax
-
deferred transaction two years ago. A
)
what is Acorn's maximum cost recovery deduction in the current year?
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