Joe Purchased a New Five-Year Class Asset on June 1,2014

question 16

Essay

Joe purchased a new five-year class asset on June 1,2014.The asset is listed property (not an automobile).It was used 55% for business and 45% for the production of income.The asset cost $100,000.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 first­year depreciation (if available).Determine Joe's total cost recovery (including the § 179 deduction)for the year.

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