Shane purchases used 7-year class property at a cost of $200,000 on April 20, 2020. Shane's cost
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Question:
Shane purchases used 7-year class property at a cost of $200,000 on April 20, 2020. Shane's cost recovery deduction for 2020 for alternative minimum tax purposes, assuming he does not elect § 179, would be:
a.$2,500.
b.$10,000.
c.$0.
d.$21,420. (this is the correct answer)
e.$14,280.
Shane's cost recovery deduction is $21,420 (0.1071 × $200,000).
Question: I am wondering why it falls in the third quarter and not the second since the asset was purchased in April.
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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