Hazel purchased a new business asset (five-year asset) on September 30, 2018, at a cost of $100,000.

Fantastic news! We've Found the answer you've been seeking!

Question:

Hazel purchased a new business asset (five-year asset) on September 30, 2018, at a cost of $100,000. On October 4, 2018, Hazel placed the asset in service. This was the only asset Hazel placed in service in 2018. Hazel did not elect § 179 or additional first-year depreciation. On August 20, 2019, Hazel sold the asset. Determine the cost recovery for 2019 for the asset.

a.$14,250

b.$19,000

c.$23,750

d.$38,000

e. None of these choices are correct.