Wong owns a magic-training company ("Kamar-Taj") as a sole proprietorship. In 2021, Wong’s business taxable income is $2,000,000 before considering any §179 deduction, and Wong purchases and places a business computer (a 5-year class property) in service for $2,500,000 on July 7th, 2021. Assume that Wong chooses (1) §179 deduction option, and (2) declining balance (DB) cost recovery method (the depreciation percentage for DB method is 20%). Determine Wong’s cost recovery deduction for 2021.
