Problem $8-40($Algorithmic$)($LO$.2,3,9)$

On April $20,2023,$ Javier Sanchez purchased and placed in service a new $7-$year class asset costing $$486,800$ 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 $$200,000$ of this asset and then use regular MACRS to cost recover the remaining cost. During $2023,$ his business generated a net income of $$584,160$ 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 $2023$ and $2024.$

Total cost recovery deduction in $2023$: $ $$

Total cost recovery deduction in $2024$: $ $$

b$.$ Complete Javier's Form $4562($page $1)$ for $2023.$

Note: For $2023,$ the maximum $179$ is $$1,160,000$ and the threshold amount is $$2,890,000.$ If an amount is zero, enter $"0".$ Enter amounts as positive numbers.

Election To Expense Certain Property Under Section $179$

Note: If you have any listed property, complete Part V before you complete Part I.