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

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Definitions:

Displacement

In psychology, a defense mechanism where an individual shifts negative feelings from their original source to a less threatening recipient.

Repression

A defense mechanism where distressing thoughts and memories are unconsciously kept out of conscious awareness.

Projection

A defense mechanism where individuals attribute their own undesirable thoughts, feelings, or motives onto someone else.

Defence Mechanism

Psychological strategies brought into play by individuals to protect themselves from unacceptable thoughts or feelings.