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:

Back Of A Check

The rear face of a check where endorsements are made, including the signature of the recipient, necessary for the check to be cashed or deposited.

Endorsement

The payee’s signature on the back of a check. It is a transfer of title on the check to the bank in exchange for the amount of money on the face of the check.

Record Of A Deposit

Documentation that confirms the placement of money or other valuable goods into a bank account or safekeeping.

Deposit Slip

A paper that goes with a bank deposit, listing the cash and/or checks amount being put into the bank.