Ferelli Inc.is a calendar year taxpayer.On September 1,Ferelli signed a 24-month lease on 3,600 square feet of commercial office space and paid a $3,240 fee to the agent who located the space and negotiated the lease.Ferelli paid $5,900 to install new overhead lighting in the office space.The lighting is 7-year recovery property.Compute Ferelli's current-year cost recovery deduction with respect to the $9,140 costs associated with the office space.

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The Answer of Ferelli Inc.is a calendar year taxpayer.On September 1,Ferelli signed a 24-month lease on 3,600 square feet of commercial office space and paid a $3,240 fee to the agent who located the space and negotiated the lease.Ferelli paid $5,900 to install new overhead lighting in the office space.The lighting is 7-year recovery property.Compute Ferelli's current-year cost recovery deduction with respect to the $9,140 costs associated with the office space.