On June 5, 2021, Javier Sanchez purchased and placed in service a new 7-year class asset costing $560,000 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). During 2021, his business generated a net income of $945,780 before any 179 immediate expense election. 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.

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 2021 and 2022. Total cost recovery deduction in 2021: $fill in the blank 1 Total cost recovery deduction in 2022: $fill in the blank 2

b. Complete Javier's Form 4562 (page 1) for 2021.

Note: For 2021, the maximum 179 is $1,050,000 and the threshold amount is $2,620,000. If an amount is zero, enter "0". Enter amounts as positive numbers.

Form 4562 Department of the Treasury Internal Revenue Service (99)Depreciation and Amortization (Including Information on Listed Property) Attach to your tax return. Go to www.irs.gov/Form4562 for instructions and the latest information.OMB No. 1545-0172

2021

Attachment Sequence No. 179

Name(s) shown on return Javier SanchezBusiness or activity to which this form relates Sanchez Landscaping, LLCIdentifying number 123-45-6789 Part IElection To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I.1Maximum amount (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1fill in the blank 32Total cost of section 179 property placed in service (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2fill in the blank 43Threshold cost of section 179 property before reduction in limitation (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . .3fill in the blank 54Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4fill in the blank 65Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing separately, see instructions5fill in the blank 7