Barry Purchased a Used Business Asset (Seven-Year Property) on September

question 71

Multiple Choice

Barry purchased a used business asset (seven-year property) on September 30, 2017, at a cost of $200,000. This is the only asset he purchased during the year. Barry did not elect to expense any of the asset under § 179, did not take additional first-year depreciation, and did not elect straight-line cost recovery. Barry sold the asset on July 17, 2018. Determine the cost recovery deduction for 2018.

• A)$19,133
• B)$24,490
• C)$34,438
• D)$55,100
• E)None of the above

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Definitions:

ATP

ATP, or adenosine triphosphate, is a molecule that transports chemical energy within cells for metabolism.

Endocrine Glands

Glands of the endocrine system that secrete their products, hormones, directly into the blood rather than through a duct.

Exocrine Glands

Glands that secrete their products into ducts that lead directly to the external environment.

Neuron Cells

Specialized cells of the nervous system that transmit electrical and chemical signals throughout the body, facilitating communication between the brain and other parts.