Answer:
A.$538,573 and $6,123
B.Check below
Explanation:
A.
Sanchez's total cost recovery deduction in 2017 is $538,573 and $6,123
B.
Section 179 expense$510,000
Additional first-year depreciation 25,000
[($560,000 – $510,000) × .50]
($50,000×.50)
2017 Cost recovery (MACRS ) 3,573
[($560,000 – $510,000 – $25,000) × .1429
(25,000×.1429)
2017 Total deduction$538,573
($510,000+$25,000+$3,573)
2018 Cost recovery (MACRS ) 6,123
[($560,000 – $510,000 – $25,000) × .2449
(25,000×.2449)
