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This for Income tax 1 2018 for individual

1.     Hazel purchased a new

business asset (five-year asset) on September 30, 2018, at a cost of $100,000. On October 4, 2018, Hazel placed the asset in service. This was the only asset Hazel placed in service in 2018. The only election with respect to the asset was not to take additional first-year depreciation; she did not elect to expense any of the asset under § 179.  On August 20, 2019, Hazel sold the asset. Determine the cost recovery for 2018 and 2019 for the asset.


a)     Which convention should be used?



b)     Determine the cost recovery for 2018.



c.      Determine the cost recovery for 2019 (remember that she sold the asset in August 2019).

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