Problem 8-40 (Algorithmic) (L0.2, 3,9) On March 20, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset costing $436,400 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 $523,680 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: $ Total cost recovery deduction in 2020: $ b. Complete Javier's Form 4562 (page 1) for 2019. Note: For 2019, the maximum 5 179 is $1,020,000 and the threshold amount is $2,550,000. If an amount is zero, enter "0". Enter amounts as positive numbers. Form 4562 OMB No. 1545- Depreciation and Amortization (Including Information on Listed Property) 2019 Attach to your tax return. Department of the Treasury Attachment Information about Form 4562 and its separate instructions is at www.irs.gov/form4562 Internal Revenue Service (99) Sequence No. 1 Name(s) shown on return Business or activity to which this form relates Identifying number Javier Sanchez Sanchez Landscaping, LLC 123-45-6789 Elartin Ta Enca Cartin Dennart dar Problem 8-40 (Algorithmic) (LO. 2, 3,9) On March 20, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset costing $436,400 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 $523,680 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: $ Total cost recovery deduction in 2020: 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 "O". Enter amounts as positive numbers. Form 4562 OMB No. 1545-01 Depreciation and Amortization (Including Information on Listed Property) Attach to your tax return. Information about Form 4562 and its separate instructions is at www.irs.gov/form4562 Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Javier Sanchez 2019 Attachment Sequence No. 179 Business or activity to which this form relates Sanchez Landscaping, LLC Identifying number 122.45-6 Class TEC Problem 8-40 (Algorithmic) (L0.2, 3,9) On March 20, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset costing $436,400 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 $523,680 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: $ Total cost recovery deduction in 2020: $ b. Complete Javier's Form 4562 (page 1) for 2019. Note: For 2019, the maximum 5 179 is $1,020,000 and the threshold amount is $2,550,000. If an amount is zero, enter "0". Enter amounts as positive numbers. Form 4562 OMB No. 1545- Depreciation and Amortization (Including Information on Listed Property) 2019 Attach to your tax return. Department of the Treasury Attachment Information about Form 4562 and its separate instructions is at www.irs.gov/form4562 Internal Revenue Service (99) Sequence No. 1 Name(s) shown on return Business or activity to which this form relates Identifying number Javier Sanchez Sanchez Landscaping, LLC 123-45-6789 Elartin Ta Enca Cartin Dennart dar Problem 8-40 (Algorithmic) (LO. 2, 3,9) On March 20, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset costing $436,400 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 $523,680 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: $ Total cost recovery deduction in 2020: 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 "O". Enter amounts as positive numbers. Form 4562 OMB No. 1545-01 Depreciation and Amortization (Including Information on Listed Property) Attach to your tax return. Information about Form 4562 and its separate instructions is at www.irs.gov/form4562 Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Javier Sanchez 2019 Attachment Sequence No. 179 Business or activity to which this form relates Sanchez Landscaping, LLC Identifying number 122.45-6 Class TEC