Timothy Purchased a New Computer for His Consulting Practice on October

question 64

Essay

Timothy purchased a new computer for his consulting practice on October 15^th of the current year. The basis of the computer was $4,000. During the Thanksgiving holiday, he decided the computer didn't meet his business needs and gave it to his college-aged son in another state. The computer was never used for business purposes again. Timothy had $50,000 of taxable income before depreciation. What is Timothy's total cost recovery expense with respect to the computer during the current year?

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Definitions:

Sheet Metal

Sheet Metal is thin, flat metal pieces of varying thickness, often used in metalworking to fabricate products or structures.

Mixed Integer Linear Optimization Model

An optimization technique involving mathematical formulas that aim to find the best outcome in a model with both integer and continuous variables under linear relationships.

Nonlinear Optimization Model

This is a mathematical model involving an optimization problem where the objective function or any of the constraints are nonlinear.

Integer

A whole number that can be positive, negative, or zero, not including fractions or decimals.