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:

Octet

The state of an atom achieved when it has a full valence shell of eight electrons, making it stable and less reactive.

Methyl Chloride

A colorless, flammable gas used as a refrigerant, solvent, and in organic synthesis.

Lewis Structure

A representation that illustrates valence electrons as dot pairs or dashes around atoms within a molecule, highlighting the bond formations between atoms.

Bromine

A chemical element with the symbol Br and atomic number 35, known for its reddish-brown color and halogen properties.