Barry purchased a used business asset (seven-year property) on September 30, 2017, at a cost of $200,000. This is the only asset he purchased during the year. Barry did not elect to expense any of the asset under § 179, did not take additional first-year depreciation, and did not elect straight-line cost recovery. Barry sold the asset on July 17, 2018. Determine the cost recovery deduction for 2018.
a. $19,133
b. $24,490
c. $34,438
d. $55,100
e. None of the above

Respuesta :

Answer:

b. $24,490

Explanation:

Depreciation percentage in 2018 = 24.49%*50%

                                                        = 12.245%  

Cost recovery deduction = 200000*12.245%

                                          = $24490

Therefore, The cost recovery deduction for 2018 $24490.