On June 1,2011,Gabriella Purchased a Computer and Peripheral Equipment (Five-Year

question 45

Essay

On June 1,2011,Gabriella purchased a computer and peripheral equipment (five-year property)for $25,000.She used the assets 40% for business,50% for the production of income,and 10% for personal use.These are the only assets Gabriella purchased during the current year.Determine her total cost recovery deduction for the current year.

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Definitions:

Economic Events

Any occurrence that impacts the financial position or performance of a business, affecting its assets, liabilities, or equity.

Accounting Reports

Accounting Reports are formal documents that summarize financial activities and the financial position of a business, typically including income statements, balance sheets, and cash flow statements.

External User

Individuals or entities outside of a company who use financial information to make decisions about their relationship with the company.

Accounting Information

Financial data and records concerning an entity's transactions and financial status, which are used for analysis, reporting, and decision-making.