7. During 2020, Scottie Pippen (calendar taxpayer) acquires and places the following 5-year class properties in service. Property Business computer Property Placement Date April 16, 2020 Cost $20,000 Business car December 1, 2020 $60,000 Total $80,000 Assume that (1) Scottie chooses declining balance (DB) cost recovery method, and (2) Scottie does not elect Sec. 179 deduction and does not claim for 50% additional first-year cost recovery deduction. Determine Scottie's cost recovery deduction for 2020. A. $8,000 B. $16,000 C. $7,500 D. $24,000 E. $28,800

7. During 2020, Scottie Pippen (calendar taxpayer) acquires and places the following 5-year class properties in service. Property Business computer Property Placement Date April 16, 2020 Cost $20,000 Business car December 1, 2020 $60,000 Total $80,000 Assume that (1) Scottie chooses declining balance (DB) cost recovery method, and (2) Scottie does not elect Sec. 179 deduction and does not claim for 50% additional first-year cost recovery deduction. Determine Scottie's cost recovery deduction for 2020. A. $8,000 B. $16,000 C. $7,500 D. $24,000 E. $28,800

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter5: Business Deductions

Section: Chapter Questions

Problem 1CE

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