The basis of cost recovery propertymust be reduced by the cost recovery allowed

Question

The basis of cost recovery propertymust be reduced by the cost recovery allowed and by not less thanthe cost recovery allowable.

Property which is classified aspersonalty is not eligible for cost recovery.

Under MACRS, the cost of an assetis recovered over a statutory recovery period.

An antique is generallynot eligible for cost recovery.

Hazel purchased a new businessasset (five-year property) on March 10, 2005, at a cost of$100,000. She did not elect to expense any of the asset under§ 179, nor did she elect straight-line costrecovery. Hazel sold the asset on January 20, 2008. Determine the cost recovery deduction for 2008.

$2,400.

$3,226.

$5,760.

$11,520.

$2,400.

Explanation / Answer

http://www.tesc.edu/coursemanuals/dagang/ACC-421-JAN.pdf Go to the above link and from page 16 to 42 , there are multiplechoices with solutions at the end. It may help you. Good Luck !

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.