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Lostsunrise [7]
4 years ago
9

James purchased a new business asset (three-year personalty) on July 23, 2017, at a cost of $40,000. James takes additional firs

t-year depreciation but does not elect Section 179 expense on the asset. Determine the cost recovery deduction for 2017
a. $8,333
b. $26,666
c. $33,333
d. $41,665
Business
1 answer:
PolarNik [594]4 years ago
6 0

Answer:

b. $26,666

Explanation:

Additional first-year depreciation =40000*0.5  = 20000

MACRS cost recovery = (40000-20000)*0.3333  = 6666

Total cost recovery deduction for 2017= 20000+6000 = 26666

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