Question

1. MC.08.056 Barry purchased a used business asset (seven-year property) on September 30, 2019, 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 claim additional first-year depreciation, and did not elect straight-line cost recovery. Barry sold the asset on July 17, 2020. Determine the cost recovery deduction for 2020. a. $19,133 b. $55,100 OC. $34,438 Od. $24,490 2. MC.08.062 On May 30, 2018. Jane purchased a factory building to use for her business. In August 2019, Jane paid $300,000 for improvements to the building. Determine Jane's total deduction with respect to the building improvements for 2019, a $4,815 O b. $2,889 c. $25,000 Od. $4,173 3. MC.08.055 Alice purchased office furniture on September 20, 2018, for $100,000. On October 10, 2018, she purchased business computers for $80,000. Alice placed all of the assets in service on January 15, 2019. She did not elect to expense any of the assets under 179, did not elect straight-line cost recovery, and did not take additional first-year depreciation. Determine the cost recovery deduction for the business assets for 2019. a. $25,722 O b. $14,710 c. $6,426 Od. $30,290

Answer 1

L. Mc.08.056 Answer (d) $24, 490 explaination 200.000 80.2449 x t = 24,490 As in this case half year wovention is used. ] MC.08.062 Answer a (6) $2889 Explaination, (300,000x 0.00963) = 2889 [MAERS wst Recovery, 39 year real propesty, moth 8.] 3. u6.08.055 Answer. d) $30,290. أبله مبه اي مع to used [In this hay you wonvention Regulen A CRS for Furniture, (7-year propesty ) (200.000 x 0.1429) for computes 15-year propesty) 180.000% 0,20) 14290 16.ooo 30,290