Timothy Purchased a New Computer for His Consulting Practice on October

question 45

Essay

Timothy purchased a new computer for his consulting practice on October 15ᵗʰ of the current year. The basis of the computer was $4,000. During the Thanksgiving holiday, he decided the computer didn't meet his business needs and gave it to his college-aged son in another state. The computer was never used for business purposes again. Timothy had $50,000 of taxable income before depreciation. What is Timothy's total cost recovery expense with respect to the computer during the current year?

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Definitions:

Jackson Pollock

An influential American painter and a major figure in the abstract expressionist movement, known for his unique style of drip painting.

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Refers to the customs, traditions, and social behaviors that characterize the United States, including its diverse population, history, and innovations in art, music, and literature.

Central Intelligence Agency

A non-military overseas intelligence agency of the U.S. federal government, responsible for collecting, processing, and analyzing information related to national security.

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