Sophia purchased the following assets in 2020. 4-15-20 New Computer $2,600 7-02-20 Office Furniture $10,000 10-2-20 Office Equipment $16,200 Sophia does not want to take any 179-expense deduction or any additional first year depreciation. Calculate the cost recovery for 2020.

Sophia purchased the following assets in 2020. 4-15-20 New Computer $2,600 7-02-20 Office Furniture $10,000 10-2-20 Office Equipment $16,200 Sophia does not want to take any 179-expense deduction or any additional first year depreciation. Calculate the cost recovery for 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Sophia purchased the following assets in 2020.

4-15-20 New Computer $2,600

7-02-20 Office Furniture $10,000

10-2-20 Office Equipment $16,200

Sophia does not want to take any 179-expense deduction or any additional first year depreciation. Calculate the cost recovery for 2020.

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

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