Please answer the following problem
On March 5, 2021, Javier Sanchez purchased and placed in service a new 7-year class asset costing $342,800 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 2021 , his business generated a net income of $411,360 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 2021 and 2022. Total cost recovery deduction in 2021: $ Total cost recovery deduction in 2022: \$ 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. Note: Don't use Part II or Part III below for listed property. Instead, use Part V. Part III MACRS Depreciation (Don't include listed property. See instructions.) \begin{tabular}{ll|l|l} \multicolumn{1}{l}{ Section A } \\ \hline 17 MACRS deductions for assets placed in service in tax years beginning before 2021 \end{tabular} Section B-Assets Placed in Service During 2021 Tax Year Using the General Depreciation System Section C-Assets Placed in Service During 2021 Tax Year Using the Alternative Depreciation System Part IV Summary (See instructions.) For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 12906N Form 4562 (2021) On March 5, 2021, Javier Sanchez purchased and placed in service a new 7-year class asset costing $342,800 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 2021 , his business generated a net income of $411,360 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 2021 and 2022. Total cost recovery deduction in 2021: $ Total cost recovery deduction in 2022: \$ 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. Note: Don't use Part II or Part III below for listed property. Instead, use Part V. Part III MACRS Depreciation (Don't include listed property. See instructions.) \begin{tabular}{ll|l|l} \multicolumn{1}{l}{ Section A } \\ \hline 17 MACRS deductions for assets placed in service in tax years beginning before 2021 \end{tabular} Section B-Assets Placed in Service During 2021 Tax Year Using the General Depreciation System Section C-Assets Placed in Service During 2021 Tax Year Using the Alternative Depreciation System Part IV Summary (See instructions.) For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 12906N Form 4562 (2021)
