James Purchased a New Business Asset (Three-Year Personalty)on July 23,2011,at

question 110

Multiple Choice

James purchased a new business asset (three-year personalty) on July 23,2011,at a cost of $40,000.He did not elect to expense any of the asset under § 179,nor did he elect straight-line cost recovery.James elects not to take additional first-year depreciation.Determine the cost recovery deduction for 2011.

• A) $8,333.
• B) $16,665.
• C) $33,333.
• D) $41,665.
• E) None of the above.

---

Definitions:

Decision Tree Tools

Analytical tools used in decision-making that use a tree-like graph or model of decisions and their possible consequences, including chance event outcomes, resource costs, and utility.

Simulation Models

Are computational tools used to imitate the operations of real-world processes or systems for the purpose of analysis or decision-making.

Setup Cost

The expenses associated with configuring or preparing equipment, machinery, or production lines for manufacturing a new product batch or type.

Operate

Operate refers to the process of controlling and managing the functions of systems, machinery, or organizations.