Joe Started a New Business This Year

question 71

Multiple Choice

Joe started a new business this year.He had purchased a computer two years ago for $4,000 and decided to use it in his business until he could afford a new system.He could purchase a new computer with the same specifications for $1,800, but his used computer is worth only $1,100.What is his computer's basis for depreciation?

• A)$1,100
• B)$1,800
• C)$4,000
• D)The computer cannot be depreciated because it was a personal asset.

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