Euclid acquires a 7-year class asset on May 9, 2020, for $200,000 (the only asset acquired during the year). Euclid does not elect immediate expensing under §179. He does not claim any available additional first-year depreciation. Calculate Euclid’s cost recovery deduction for 2019 and 2020.

Respuesta :

Answer:

2019 $28,580

2020 $48,980

Explanation:

Calculation to determine Euclid’s cost recovery deduction for 2019 and 2020.

2019 Cost recovery deduction=$200,000x.1429

2019 Cost recovery deduction= $28,580

2020 Cost recovery deduction= $200,000x.2449

Cost recovery deduction= $48,980

Therefore Euclid’s cost recovery deduction for 2019 and 2020 will be :

2019 $28,580

2020 $48,980