Timothy purchased a new computer for his consulting practice on October 15 th of the current year. The basis of the computer was

Question

2 years ago

14

Timothy purchased a new computer for his consulting practice on October 15 th of the current year. The basis of the computer was

$4,000. During the Thanksgiving holiday, he decided the computer didn't meet his business needs and gave it to his college-aged son in another state. The computer was never used for business purposes again. Timothy had $50,000 of taxable income before depreciation. What is Timothy's total cost recovery expense with respect to the computer during the current year

Business

1 answer:

zaharov [31] · Answer 1 · 2022-12-20T03:06:22+03:00

Answer:

$0

Explanation:

Computer was sold during the same year which it is purchased. No depreciation is allowed in such a case.

In other word, there would be $0 total cost recovery as there is no Depreciation Expense given and in the same year the computer is given to Thomas son so no Depreciation Is allowed in this case.