On January 20, 2022, Javier Sanchez purchased and placed in service a new 7-year class asset costing $419,600 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). Rather than using bonus depreciation, Javier would like to use § 179 to expense $200,000 of this asset and then use regular MACRS to cost recover the remaining cost. During 2022, his business generated a net income of $503,520 before any § 179 immediate expense election. If required round your intermediate computations and final answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. Determine the cost recovery deductions (including first-year additional depreciation) that Javier Sanchez can claim with respect to this asset in 2022 and 2023. Total cost recovery deduction in 2022: $ 31,381 Total cost recovery deduction in 2023: $ 53,780 b. Complete Javier's Form 4562 (page 1) for 2022. Note: For 2022, the maximum § 179 is $1,080,000 and the threshold amount is $2,700,000. If an amount is zero, enter "0". Enter amounts as positive numbers. Form 4562 Department of the Treasury Internal Revenue Service Name(s) shown on return Javier Sanchez Part I 1 2 3 4 Depreciation and Amortization (Including Information on Listed Property) 2022 Attachment Attach to your tax return. Go to www.irs.gov/Form4562 for instructions and the latest Sequence information. No. 179 Business or activity to which this form relates. Sanchez Landscaping, LLC Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I. Maximum amount (see instructions) Total cost of section 179 property placed in service (see instructions). Threshold cost of section 179 property before reduction in limitation (see instructions).... Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . Identifying number 123-45-6789 1 2 OMB No. 1545-0172 3 4