George Purchases Used Seven-Year Class Property at a Cost of $200,000

question 110

Multiple Choice

George purchases used seven-year class property at a cost of $200,000 on April 20, 2012.Determine George's cost recovery deduction for 2012 for alternative minimum tax purposes, assuming George does not elect § 179.

• A)$2,500.
• B)$10,000.
• C)$14,280.
• D)$28,580.
• E)None of the above.

---

Definitions:

Differentiation Strategy

A company that uses a differentiation strategy attempts to develop an image or reputation for its product or service that sets the company apart from its competitors.

Diversification Strategy

A business approach where a company broadens its range of products or markets to reduce risk and increase potential for growth.

Corporate Strategies

High-level plans or frameworks developed by businesses to achieve their long-term objectives and to secure a competitive position in the market.

Retrenchment Strategy

A business strategy used to reduce the scale or scope of a company's operations to improve financial stability during tough times.