Wendell Purchased a Computer System for $6,000 on June 1

question 95

Essay

Wendell purchased a computer system for $6,000 on June 1, 2016. He kept records of his computer usage and found out he used the computer 45 percent of the time for his business, 20 percent for tracking his extensive investment portfolio and making trades, and the remaining time was for personal use in both years.
a. Determine Wendell's depreciation deductions in 2016 and 2017.
b. In 2018, Wendell's usage remained the same but he decided to dispose of the computer on November 1. Determine his 2018 depreciation deduction and his gain or loss on the disposition if he received $2,500 for the system.

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Definitions:

Conditioning Principles

Conditioning Principles involve the processes of learning associations between environmental stimuli and behavioral responses, integral to both classical and operant conditioning.

Multifactorial

Relating to or determined by many factors or causes, especially regarding disease causation or genetic expression.

Resistance to Extinction

The persistence of learned behavior even after the original conditions that led to its acquisition have been removed.

Conditioned Stimulus

A formerly indifferent cue that, through association with an unconditioned stimulus, comes to provoke a conditioned response.