Shelly is self-employed. In 2020, Shelly had net earnings from her business of $160,000. The following items relate to her 2020 taxes:

SEP retirement contribution - $5,000

Health insurance premiums paid - $12,000

Self-employment tax - $22,000

If Shelly had no other income or expense items, her adjusted gross income in 2020 would be:

A. $143,000

B. $132,000

C. $155,000

D. $138,000

Eric acquires a 7-year class asset on May 9, 2021, for $50,000 (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 2021.

	A	$7,145
	B	$10,000
	C	$12,245
	D	$5,000