Barry Purchased a Used Business Asset (Seven-Year Property) on September

question 46

Multiple Choice

Barry purchased a used business asset (seven-year property) on September 30,2015,at a cost of $200,000.This is the only asset he purchased during the year.Barry did not elect to expense any of the asset under § 179,did not take additional first-year depreciation (if available) ,and did not elect straight-line cost recovery.Barry sold the asset on July 17,2016.Determine the cost recovery deduction for 2016.

• A)$19,133
• B)$24,490
• C)$34,438
• D)$55,100
• E)None of the above

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Definitions:

Borrowers' Money

Funds that individuals or entities borrow from lenders, which they are obligated to repay, often with interest, over time.

Other Peoples' Money

Refers to investing or spending money that belongs to others, typically implying a responsibility to manage those funds wisely.

Expected Return

The projected profit or loss from an investment over a given period.

Investment

The action of allocating resources, usually money, with the expectation of generating an income or profit.