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

On June $5,2022,$ Javier Sanchez purchased and placed in service a new $7-$year class asset costing $$560,000$ for use in his landscaping business, which he operates as a single member LLC $($Sanchez Landscaping LLC$).$ During $2022,$ his business generated a net income of $$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 $2022$ and $2023.$

Total cost recovery deduction in $2022$: $-{?}^{251,444}$

Total cost recovery deduction in $2023$: &

b$.$ Complete Javier's Form $4562($page $1)$ for $2022.$

Note: For $2022,$ the maximum $179$ is $$1,080,000$ and the threshold amount is $$2,700,000.$ If an amount is zero, enter $"0".$ Enter amounts as positive numbers.

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