Alice purchased office furniture on September 20, 2022, for $100,000. On October 10, 2022, she purchased business computers for $80,000. Alice placed all of the assets in service on December 15, 2022. 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 2022 if these were her only capital purchases in the year.
Alice purchased office furniture on September 20, 2022, for $100,000. On October 10, 2022, she purchased business computers for $80,000. Alice placed all of the assets in service on December 15, 2022. 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 2022 if these were her only capital purchases in the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Alice purchased office furniture on September 20, 2022, for $100,000. On October 10, 2022, she
purchased business computers for $80,000. Alice placed all of the assets in service on December
15, 2022. 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 2022 if these were her only capital purchases in the year.
O $7,570
O $180,000
$7,856
$11,522
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