Jim Acquires a New Seven-Year Class Asset on September 20

question 21

Essay

Jim acquires a new seven-year class asset on September 20, 2017, for $80,000. He placed the asset in service on October 5, 2017. He does not elect to expense any of the asset under § 179 or elect straight-line, cost recovery. He takes additional first-year depreciation. He sells the asset on August 25, 2018. This is the only asset he acquires in 2017. Determine Jim's cost recovery in 2017 and 2018.

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Definitions:

Zona Reticularis

Inner layer of the adrenal cortex that secretes androgens and estrogens.

Insulin Shock

A severe hypoglycemic condition resulting from an overdose of insulin, leading to low blood sugar levels, confusion, and unconsciousness.

Alpha Cells

Endocrine cells in the pancreas that produce glucagon, which raises blood glucose levels.

Beta Cells

Cells located in the pancreas that produce and secrete insulin, a hormone that regulates blood glucose levels.