Timothy Purchased a New Computer for His Consulting Practice on October

question 1

Essay

Timothy purchased a new computer for his consulting practice on October 15 ^th of the current year. The basis of the computer was $4,000. During the Thanksgiving holiday, he decided the computer didn't meet his business needs and gave it to his college-aged son in another state. The computer was never used for business purposes again. Timothy had $50,000 of taxable income before depreciation. What is Timothy's total cost recovery deduction with respect to the computer during the current year?

---

Definitions:

Digital Divide

The discrepancy between those who have access to the opportunities and knowledge that computers and the Internet offer and those who do not.

Technology

The application of scientific knowledge for practical purposes, especially in industry.

Internet

A vast network of computers and other electronic devices connected globally, allowing for data exchange and communication across the world.

Software

Programs and operating information used by a computer to perform specific tasks.