In 2020, Murphy Manufacturing Inc. acquired and placed in service a piece of machinery to manufacture interactive toys for dogs. The following costs were associated with the machinery: Purchase price...

In 2020, Murphy Manufacturing Inc. acquired and placed in service a piece of machinery to manufacture interactive toys for dogs. The following costs were associated with the machinery:

• Purchase price from vendor$2,130,000


• Tax on purchase price $150,000


• Shipping/Delivery$20,000


• Insurance for Shipping$5,000


• Installation/Calibration$15,000


• On-going support contract$10,000/year


• Routine annual cleaning$2,000/year


• Montgomery Manufacturing placed a piece of equipment (7 year property) in service on April 1, 2020. It’s cost was $2,550,000. It was the only asset placed in service in 2020.

How much 179 expense deduction can they take and What is the remaining depreciable basis after the 179 elections?