Timothy Purchased a New Computer for His Consulting Practice on October

question 78

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:

Endoscopic Retrograde Cholangiopancreatography

A medical procedure that combines the use of endoscopy and fluoroscopy to diagnose and treat conditions related to the bile ducts, pancreatic duct, and gallbladder.

Lower Esophageal Sphincter

A muscular ring at the lower end of the esophagus that controls the flow of food from the esophagus into the stomach.

Alimentary Canal

The digestive tube extending from the mouth to the anus, through which food is ingested, digested, absorbed, and waste material expelled.

Amylase

An enzyme that catalyzes the hydrolysis of starch into sugars, found in the saliva and pancreatic fluid of humans.