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:

External Oblique

A muscle located on the side and front of the abdomen, involved in rotating and laterally flexing the spine.

Transverse Abdominis

A deep muscle layer of the abdominal wall that helps stabilize the core.

Workplace Etiquette

The set of conventional and expected behaviors, manners, and practices within a professional environment.

Multitasking

The ability to handle more than one task simultaneously.