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

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.