On April 22, 2019, Hazel Corporation purchased and placed in service a new five-year class asset costing $2,900,000. Hazel wants to expense the maximum amount available under 179. Hazel elects NOT to take additional first-year depreciation. Assume taxable income is 800,000.

Be sure to show each and every calculation for maximum allowed credit!

1. Determine Hazel Corporations maximum allowable total cost recovery for 2020. Label each element of depreciation/cost recovery you are taking.
2. The asset was sold September 1, 2021. Determine Hazel Corporation's total cost recovery for 2021 for this asset.
3. Determine Hazel Corporation's adjusted basis in the asset at the date of sale in 2021.
4. If the selling price was $2,000,000, how much was the gain or (loss)? Be sure to indicate if gain or (loss).