On February 5, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset costing $402,800 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). Rather than using bonus depreciation, Javier would like to use 179 to expense $200,000 of this asset and then use regular MACRS to cost recover the remaining cost. During 2018, his business generated a net income of $483,360 before any $ 179 immediate expense election. If required round your intermediate computations and final answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. Determine the cost recovery deductions (including first year additional depreciation) that Javier Sanchez can claim with respect to this asset in 2019 and 2020. Total cost recovery deduction in 2019: $ 242,698 x Total cost recovery deduction in 2020: $ 73,176 X b. Complete Javier's Form 4562 (page 1) for 2019. Note: For 2019, the maximum $ 179 is $1,020,000 and the threshold amount is $2,550,000. If an amount is zero, enter "0". Enter amounts as positive numbers. OMB No. 1545-0172 Depreciation and Amortization (Including Information on Listed Property) 2019 Department of the Treasury Attach to your tax return. Attachment Internal Revenue Service (99) Information about Form 4562 and its separate instructions is at www.irs.gov/form4562. Sequence No. 179 Name(s) shown on return Business or activity to which this form relates Identifying number Javier Sanchez Sanchez Landscaping, LLC 123-45-6789 Part I Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I. Maximum amount (see instructions)..... 1,020,000 Total cost of section 179 property placed in service (see instructions). 402,800 Threshold cost of section 179 property before reduction in limitation (see instructions) 2,550,000 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter-O-. Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -O-. If married filing separately, see 1,020,000 Form 4562 1 1 2 2 3 3 4 4 0 5 instructions 5 6 (a) Description of property (b) Cost (business use only) (c) Elected cost Landscaping equipment 402,800 200,000 7 Listed property. Enter the amount from line 29 7