1.

Daisy purchased a new business asset (five-year asset) on September 30,2020, at a cost of

$100,000. On October 4, 2020, she placed the asset in service. This was the only asset she placed in service in 2020. Daisy did not elect Code Section 179 or additional first-year depreciation. On August 20, 2021, Daisy sold the asset. Determine the cost recovery (depreciation) for 2021 for the asset.

a. $ 14,250 b. $ 19,000 c. $ 23,750 d. $ 38,000

2.

Jason purchased a new business asset (three-year personalty) on July 23, 2021, at a

cost of $ 40,000. Jason takes additional first-year depreciation but does not elect Section 179 expense on the asset. Determine the cost recovery deduction for 2021.