Determine the cost recovery deduction

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Question 1 - Nikki purchased a new business asset (three-year property) on July 23, 2015 at a cost of $60,000. She did not elect to expense any of the asset under Section 179 nor did she elect Straight-Line Cost Recovery (Depreciation). Determine the Cost Recovery (Depreciation) deduction for 2015. (The applicable Statutory Percentage for the asset for 2015 is .3333)

$60,000.

$20,000.

$ 10,000.

$30,000.

Question 2 - On June 1, 2014 Shunnar places in service a new automobile (five-year property) that cost $21,000. The automobile is used sixty percent (60%) for business and forty percent (40%) for personal use. (Assume this percentage is maintained for the life of the automobile). Determine the Cost Recovery (Depreciation) deduction for 2015. (The applicable Statutory Percentage for the automobile for 2015 is .32 and the year 2 Limitation for automobile Cost Recovery (Depreciation) deduction is $5,100).

$ 2,352.

$ 5,100.

$11,160.

$ 3,060.

Reference no: EM131761297

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