Jim Acquires a New Seven-Year Class Asset on September 20

question 25

Essay

Jim acquires a new seven-year class asset on September 20, 2012, for $80,000. He placed the asset in service on October 5, 2012.He does not elect to expense any of the asset under § 179 or elect straight-line, cost recovery. He takes additional first-year depreciation.He sells the asset on August 25, 2013.This is the only asset he acquires in 2012. Determine Jim's cost recovery in 2012 and 2013.

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Definitions:

Validity of an Experiment

This refers to the extent to which the results of an experiment accurately reflect the reality or truth of the situation being studied.

Experimenter Bias

In experimental design, the problem of some kind of bias in an experimental group because of the way the researcher, knowingly or unknowingly, has selected its members.

Internal Validity

The degree to which the results of a study can be attributed to the experimental treatments or interventions rather than other factors.

Spurious Relationship

An apparent relationship between two variables that is actually caused by a third variable.