Audra Acquires the Following New Five-Year Class Property in 2019

question 22

Essay

Audra acquires the following new five-year class property in 2019: $$\begin{array} { l l r } \text { Asset } & \text { Acquisition Date } & \text { Cost } \\\text { A } & \text { January 10 } & \$ 106,000 \\\text { B } & \text { July } 5 & 70,000 \\\text { C } & \text { November 15 } & \underline { 1,950,000 } \\\text { Total } & & \$ 2,126,000 \\\end{array}$$ Audra elects § 179 treatment for Asset C. Her taxable income from her business would not create a limitation for purposes of the § 179 deduction. Audra does not claim any available additional first-year depreciation deduction. Determine her total cost recovery deduction (including the § 179 deduction) for the year.

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Definitions:

Insight

The capacity to gain an accurate and deep intuitive understanding of a person or thing, often leading to a breakthrough or solution.

Realization

The process of becoming fully aware of something as a fact or truth; coming to an understanding or acknowledgement.

Solution

A means of solving a problem or dealing with a difficult situation.

Shortsightedness

A common vision condition, also known as myopia, wherein distant objects appear blurry while close objects can be seen clearly.