Barry purchased a used business asset (seven-year property)on September 30,2014,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 (if available),and did not elect straight-line cost recovery.Barry sold the asset on July 17,2015.Determine the cost recovery deduction for 2015.
A)$19,133
B)$24,490
C)$34,438
D)$55,100
E)None of these

Question

Quizplus · Accepted Answer

The half-year convention applies in this case [$200,000 × .2449 × 1/2 = $24,490].

Barry Purchased a Used Business Asset (Seven-Year Property)on September 30,2014,at