Answer : C $ 76,920

Explanation to the above answer:

Cost recovery refers to the deduction of a portion of the cost of an asset, used in a business or for the production of income, over its useful life through depreciation, amortization, or depletion.

Cost recovery methods only apply to assets that:

·         are subject to exhaustion, wear and tear, or obsolescence;

·         are used in a trade or business or other income-producing activity — personal property is not depreciable; and

·         have a useful life greater than 1 year.