Juan acquires a new 5-year class asset on March 14, 2017, for $200,000. This is the only

Question:

Juan acquires a new 5-year class asset on March 14, 2017, for $200,000. This is the only asset Juan acquired during the year. He does not elect immediate expensing under § 179. He does not claim any available additional first-year depreciation. On July 15, 2018, Juan sells the asset.

a. Determine Juan’s cost recovery for 2017.

b. Determine Juan’s cost recovery for 2018.