Joe Purchased a New Five-Year Class Asset on June 1,2011

question 109

Essay

Joe purchased a new five-year class asset on June 1,2011.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 elects not to take additional first-year depreciation.Determine Joe's total cost recovery (including the § 179 deduction)for the year.

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Definitions:

Principled

Operating according to ethical standards and specific, often moral, principles.

Avoidance

Pretends that a conflict doesn’t really exist.

Authoritative Command

A management style where leaders make decisions without consulting subordinates, relying on their authority for compliance.

Unassertive

A behavior pattern in which individuals tend to avoid expressing their opinions or needs, and often accommodate others to avoid conflict.