On March 5, 2022, Javier Sanchez purchased and placed in service a new 7-year class assetcosting $388,400 for use in his landscaping business, which he operates as a single memberLLC (Sanchez Landscaping LLC).Rather than using bonus depreciation, Javier would like to use § 179 to expense $200,000 ofthis asset and then use regular MACRS to cost recover the remaining cost. During 2022, hisbusiness generated a net income of $466,080 before any § 179 immediate expense election.If required round your intermediate computations and final answers to the nearestdollar. Click here to access the depreciation table to use for this problem.a. Determine the cost recovery deductions (including first-year additional depreciation) thatJavier Sanchez can claim with respect to this asset in 2022 and 2023.Total cost recovery deduction in 2022: $Total cost recovery deduction in 2023:b. Complete Javier's Form 4562 (page 1) for 2022.Note: For 2022, the maximum § 179 is $1,080,000 and the threshold amount is $2,700,000.If an amount is zero, enter "0". Enter amounts as positive numbers.

The expected decline in the value of a fixed asset over the course of its use is called…

a. Determine the cost recovery deductions (including first-year additional depreciation) that Javier Sanchez can claim with respect to this asset in 2022 and 2023. Total cost recovery deduction in 2022: $ Total cost recovery deduction in 2023: $ b. Complete Javier's Form 4562 (page 1) for 2022.

a. Determine the cost recovery deductions (including first-year additional depreciation) that Javier Sanchez can claim with respect to this asset in 2022 and 2023. Total cost recovery deduction in 2022: $ Total cost recovery deduction in 2023: $ b. Complete Javier's Form 4562 (page 1) for 2022.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 43P

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