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

question 20

Multiple Choice

Hazel purchased a new business asset (five-year asset) on September 30, 2019, at a cost of $100,000.On October 4, 2019, she placed the asset in service.This was the only asset she placed in service in 2019.Hazel did not elect
§ 179 or additional first-year depreciation.On August 20, 2020, Hazel sold the asset.Determine the cost recovery for 2020 for the asset.

• A)$14,250
• B)$19,000
• C)$23,750
• D)$38,000

---

Definitions:

Charitable Contributions

Contributions given to eligible entities that the donor might deduct from their taxes.

Adjusted Gross Income

The total gross income minus specific deductions, a crucial figure in the determination of a taxpayer’s liabilities and eligibility for various tax credits and deductions.

Carry Forward

A tax provision allowing a taxpayer to use any remaining tax credits or deductions in the following fiscal period.

Cash Contributions

Donations or gifts given in the form of physical money, such as banknotes or coins, to charitable organizations or entities.