Jim acquires a new seven-year class asset on September 20, 2012, for $80,000. He placed the asset in service on October 5, 2012.He does not elect to expense any of the asset under § 179 or elect straight-line, cost recovery. He takes additional first-year depreciation.He sells the asset on August 25, 2013.This is the only asset he acquires in 2012. Determine Jim's cost recovery in 2012 and 2013.

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The Answer of Jim acquires a new seven-year class asset on September 20, 2012, for $80,000. He placed the asset in service on October 5, 2012.He does not elect to expense any of the asset under § 179 or elect straight-line, cost recovery. He takes additional first-year depreciation.He sells the asset on August 25, 2013.This is the only asset he acquires in 2012. Determine Jim's cost recovery in 2012 and 2013.

Jim Acquires a New Seven-Year Class Asset on September 20