On June 1, 2019, Gabriella Purchased a Computer and Peripheral

question 83

Essay

On June 1, 2019, Gabriella purchased a computer and peripheral equipment (five-year property) for $25,000.She used the assets 40% for business, 50% for the production of income, and 10% for personal use.These are the only assets Gabriella purchased during the current year.Determine her total cost recovery deduction for 2019.

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Definitions:

NSF Cheque

A check that cannot be processed because the writer's account lacks sufficient funds, standing for Non-Sufficient Funds.

Bank Error

An error made by a bank in the accounting records or transactions of a customer's account.

EFT

Electronic Funds Transfer, a digital method for transferring funds from one bank account to another, either within a single financial institution or across multiple institutions, through computer-based systems.

Cash Equivalents

Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.