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Jim Acquires a New Seven-Year Class Asset on September 20,2011,for

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Jim acquires a new seven-year class asset on September 20,2011,for $80,000.He placed the asset in service on October 5,2011.He does not elect to expense any of the asset under § 179 or elect straight-line,cost recovery.He elects not to take additional first-year depreciation.He sells the asset on August 25,2012.This is the only asset he acquires in 2011.Determine Jim's cost recovery in 2011 and 2012.

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Definitions:

Leadership

The action of leading a group of people or an organization, or the ability to do this through vision, guidance, and direction.

Interpretation

The process of explaining or understanding the meaning of something, often applied to texts, laws, or artworks.

Law

A system of rules that a particular country or community recognizes as regulating the actions of its members and may enforce by the imposition of penalties.

Ethical

Pertaining to or dealing with morals, the principles of morality pertaining to right and wrong in conduct.

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