Question
Juan, a sole proprietor, acquires a new 5-year class asset on March 14, 2019, for $200,000. This is the only asset Juan acquired during the
Juan, a sole proprietor, acquires a new 5-year class asset on March 14, 2019, for $200,000. This is the only asset Juan acquired during the year. He does not elect immediate expensing under 179. Juan does not claim any available additional first-year depreciation. On July 15, 2020, Juan sells the asset. a. Determine Juans cost recovery for 2019. b. Determine Juans cost recovery for 2020.
Note:
Please provide answers in word or excel as it's difficult to read handwritten answers
Please provide a detailed explanation on how to arrive at the correct answer
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