Joe Purchased a New Five-Year Class Asset on June 1,2010

question 22

Essay

Joe purchased a new five-year class asset on June 1,2010.The asset is listed property (not an automobile).It was used 55% for business and 45% for the production of income.The asset cost $500,000.Joe made the § 179 election.Joe's taxable income would not create a limitation for purposes of the § 179 deduction.If Congress reenacts additional first-year depreciation for 2010,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:

Poussin

Nicolas Poussin (1594-1665) was a French painter in the classical style whose work predominantly featured clarity, logic, and order, often focusing on scenes from the Bible or ancient history.

Saint John

A figure commonly referenced in Christian theology, including John the Apostle, John the Evangelist, or John the Baptist, each of whom played a significant role in the New Testament.

Eagle

A large bird of prey with a powerful build and keen eyesight, revered in various cultures for its symbolic implications of freedom, strength, and high status.

Le Nain's Family of Country People

A painting by the Le Nain brothers, noted for its realistic depiction of a peasant family, highlighting the dignity and somber beauty of rural life.