Hazel Purchased a New Business Asset (Five-Year Asset) on September

question 6

Multiple Choice

Hazel purchased a new business asset (five-year asset) on September 30, 2018, at a cost of $100,000. On October 4, 2018, Hazel placed the asset in service. This was the only asset Hazel placed in service in 2018. Hazel did not elect § 179 or additional first-year depreciation. On August 20, 2019, Hazel sold the asset. Determine the cost recovery for 2019 for the asset.

• A) $14,250
• B) $19,000
• C) $23,750
• D) $38,000
• E) None of the above

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Definitions:

Base Pairs

Base pairs are the pairs of nitrogenous bases that connect the complementary strands of DNA, consisting of adenine with thymine and cytosine with guanine in DNA.

Purine

A type of nitrogenous base found in DNA and RNA, which includes adenine and guanine.

Pyrimidine

A category of nitrogenous bases that includes cytosine, thymine, and uracil, which are fundamental components of nucleic acids.

X-ray Crystallography

A scientific method used to determine the atomic and molecular structure of a crystal by diffracting X-rays through the crystal.