Jim acquires a new seven-year class asset on September 20,2010,for $60,000.He placed the asset in service on October 5,2010.He does not elect to expense any of the asset under § 179 or elect straight-line cost recovery.If Congress reenacts additional first-year depreciation for 2010,he elects not to take additional first-year depreciation.He sells the asset on August 25,2011.This is the only asset he acquires in 2010.Determine Jim's cost recovery in 2010 and 2011.

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The Answer of Jim acquires a new seven-year class asset on September 20,2010,for $60,000.He placed the asset in service on October 5,2010.He does not elect to expense any of the asset under § 179 or elect straight-line cost recovery.If Congress reenacts additional first-year depreciation for 2010,he elects not to take additional first-year depreciation.He sells the asset on August 25,2011.This is the only asset he acquires in 2010.Determine Jim's cost recovery in 2010 and 2011.

Jim Acquires a New Seven-Year Class Asset on September 20,2010,for