Hazel purchased a new business asset (five-year asset) on September 30,2011,at a cost of $100,000.On October 4,2011,Hazel placed the asset in service.This was the only asset Hazel placed in service in 2011.The only election with respect to the asset was not to take additional first-year depreciation.On August 20,2012,Hazel sold the asset.Determine the cost recovery for 2012 for the asset.
A) $9,600.
B) $16,000.
C) $26,000.
D) $38,000.
E) None of the above.
Correct Answer:
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