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

question 109

Essay

Wendell purchased a computer system for $6,000 on June 1 of year 1. 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 years 1 and 2.
b. In year 3, Wendell's usage remained the same but he decided to dispose of the computer on November 1. Determine his year 3 depreciation deduction and his gain or loss on the disposition if he received $2,500 for the system.

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Definitions:

Cyanosis

A bluish or purplish discoloration of the skin and mucous membranes due to insufficient oxygenation of the blood.

Arrhythmias

Abnormalities or irregularities in the heart rate or rhythm, potentially causing it to beat too fast, too slow, or inconsistently.

Restlessness

A state of unease or inability to remain still or silent, often indicating nervousness or mental distress.

Chronic Obstructive Pulmonary Disease (COPD)

A group of progressive lung diseases, including emphysema and chronic bronchitis, characterized by airflow obstruction and breathing-related problems.