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

question 111

Essay

Joe purchased a new five-year class asset on June 1, 2012.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.Determine Joe's total cost recovery (including the § 179 deduction) for the year.

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Definitions:

Low-Level

Used to describe basic or foundational components or processes that operate at a rudimentary or simple stage.

Autonomy

The capacity to make an informed, uncoerced decision independently, signifying self-governance or freedom.

Growth Motivation

The inner desire and drive to achieve personal improvement, self-fulfillment, and the realization of one's potential.

Security

A state of being protected or safe from harm, encompassing physical, emotional, and financial aspects.