George Purchases Used Seven-Year Class Property at a Cost of $200,000

question 69

Multiple Choice

George purchases used seven-year class property at a cost of $200,000 on April 20, 2017. Determine George's cost recovery deduction for 2017 for alternative minimum tax purposes, assuming George does not elect § 179 and does not take additional first-year depreciation.

• A)$2,500
• B)$10,000
• C)$14,280
• D)$28,580
• E)None of the above

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Definitions:

Absorption

The psychological phenomenon of becoming fully immersed and engaged in an activity to the point of losing awareness of one's surroundings.

Metabolizes

The biochemical process by which organisms convert substances into energy and materials necessary for cellular function and growth.

Dopamine

Neurotransmitter in the brain, excess amounts of which have been thought to cause schizophrenia.

Reuptake

Process in which a sending neuron reabsorbs some of the neurotransmitter in the synapse, decreasing the amount left in the synapse.