Hazel Purchased a New Business Asset (Five-Year Asset) on September

question 44

Multiple Choice

Hazel purchased a new business asset (five-year asset) on September 30,2015,at a cost of $100,000.On October 4,2015,Hazel placed the asset in service.This was the only asset Hazel placed in service in 2015.Hazel did not elect § 179 or additional first-year depreciation if available.On August 20,2016,Hazel sold the asset.Determine the cost recovery for 2016 for the asset.

• A)$14,250
• B)$19,000
• C)$23,750
• D)$38,000
• E)None of the above

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Definitions:

Behavioral Economics

A field of study that examines the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Dictator Game

An experimental paradigm in behavioral economics and psychology, where an individual (the "dictator") determines how to split a given resource between themselves and another participant.

Behavioral Economists

Experts in a field of economics that integrates insights from psychology to understand how people make economic decisions.

Invisible Hand

A term coined by Adam Smith to describe the self-regulating nature of the marketplace, where individual self-interests unintentionally benefit society.