Elect straight-line cost recovery


Bonnie purchased a new business asset (five-year property) on March 10, 2010, at a cost of $20,000. She also purchased a new business asset (seven-year property) on November 20, 2010, at a cost of $13,000. Bonnie did not elect to expense either of the assets under § 179, nor did she elect straight-line cost recovery. Bonnie did elect not to take additional first-year depreciation. Determine the cost recovery deduction for 2010 for these assets.

a) $5,858.

b) $7,464.

c) $9,586.

d) $19,429.

e) None of the above.

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Accounting Basics: Elect straight-line cost recovery
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