Timothy had 50000 of taxable income before depreciation


Question - Timothy purchased a new computer for his consulting practice on October 15th of the current year. The basis of the computer was $4,000. During the Thanksgiving holiday, he decided the computer didn't meet his business needs and gave it to his college-aged son in another state. The computer was never used for business purposes again. Timothy had $50,000 of taxable income before depreciation. What is Timothy's total cost recovery expense with respect to the computer during the current year?

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Accounting Basics: Timothy had 50000 of taxable income before depreciation
Reference No:- TGS02828537

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