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

question 74

Multiple Choice

Hazel purchased a new business asset (five-year asset) on September 30, 2012, at a cost of $100,000. On October 4, 2012, Hazel placed the asset in service. This was the only asset Hazel placed in service in 2012. The only election with respect to the asset was not to take § 179. On August 20, 2013, Hazel sold the asset. Determine the cost recovery for 2013 for the asset.

• A)$9,600.
• B)$11,875.
• C)$23,750.
• D)$38,000.
• E)None of the above.

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Definitions:

CO₂

Carbon dioxide, a colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is absorbed by plants in photosynthesis.

UV Radiation

Ultraviolet radiation is a form of electromagnetic radiation that comes from the sun and man-made sources like tanning beds, capable of causing skin damage, including sunburn and skin cancer.

Ozone

A molecule composed of three oxygen atoms, known for its presence in the Earth's stratosphere, where it forms a layer that protects life by blocking most of the sun's harmful ultraviolet radiation.

Undecomposed Leaves

Leaves that have fallen from trees but have not yet broken down or decomposed, often accumulating on the forest floor.