Jefferson Inc. generated over $10,000,000 in taxable income…
Jefferson Inc. generated over $10,000,000 in taxable income in 2025. Jefferson made one asset purchase: new manufacturing equipment costing $4,904,800. The equipment has a 7-year recovery period and was placed in service on June 14. Assuming that Jefferson made the maximum §179 election with respect to the equipment, compute Jefferson Inc.’s 2025 cost recovery deduction ignoring bonus depreciation.Half-Year Convention Year 1: 5-year 20.00%; 7-year 14.29%. Mid-Quarter Convention Quarter 1 Year 1: 5-year 35.00%; 7-year 25.00%. Mid-Quarter Convention Quarter 2 Year 1: 5-year 25.00%; 7-year 17.85%. Mid-Quarter Convention Quarter 3 Year 1: 5-year 15.00%; 7-year 10.71%. Mid-Quarter Convention Quarter 4 Year 1: 5-year 5.00%; 7-year 3.57%
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