Joe Purchased a New Five-Year Class Asset on June 1,2016

question 44

Essay

Joe purchased a new five-year class asset on June 1,2016.The asset is listed property (not an automobile).It was used 55% for business and 45% for the production of income.The asset cost $1,000,000.Joe made the § 179 election.Joe's taxable income would not create a limitation for purposes of the § 179 deduction.Joe does not take additional first-year depreciation (if available).Determine Joe's total cost recovery (including the § 179 deduction)for the year.

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Definitions:

VALS

A psychographic tool used to categorize consumers into types based on their values, attitudes, lifestyles, and demographics.

Values and Lifestyles

A psychographic classification system categorizing consumers according to their values, lifestyles, attitudes, and demographics.

Psychographics

The examination and categorization of individuals based on their psychological attributes, goals, and attitudes, particularly for the purposes of market analysis.

Marketers

Individuals dedicated to identifying consumer needs and promoting goods or services to meet those needs.