On July 15, 2009, Travis purchased some office furniture for $20,000 to be used in his business. He did not elect to expense the equipment under §179 or bonus. On December 15, 2011, he sells the equipment. What is his cost recovery deduction for 2011?

A. $0
B. $1,749
C. $2,858
D. $3,498

is it C

To determine Travis's cost recovery deduction for 2011, we first need to calculate the depreciation expense for the office furniture from July 15, 2009, to December 31, 2011.

The office furniture falls under the Modified Accelerated Cost Recovery System (MACRS) with a recovery period of 7 years. According to the MACRS depreciation tables, the depreciation deduction for a 7-year property for Year 1 is 14.29%.

Therefore, the depreciation expense for Year 1 (2009) would be $20,000 * 14.29% = $2,858.

Since Travis sells the equipment on December 15, 2011, we need to prorate the depreciation deduction for 2011. The prorated amount is calculated based on the number of months the asset was held in the year.

Travis holds the equipment for 11.5 months in 2011 (January 1 to December 15). So, the prorated depreciation expense for 2011 would be $2,858 * (11.5/12) = $2,747.

Therefore, the correct answer is C. $2,858, rounded to the nearest dollar.