On February 5, 2022, Javier Sanchez purchased and placed in service a new 7-year class asset costi $294,800 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 as and then use regular MACRS to cost recover the remaining cost. During 2022, his business generate net income of $353,760 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 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.

On February 5, 2022, Javier Sanchez purchased and placed in service a new 7 -year class asset cost $294,800 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 as and then use regular MACRS to cost recover the remaining cost. During 2022, his business generat net income of $353,760 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 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