Paul Bought a Computer for $15,000 for Business Use on March

question 79

Multiple Choice

Paul bought a computer for $15,000 for business use on March 18,2012.This was his only purchase for that year.Paul used the most accelerated depreciation method available,but did not elect Sec.179. Bonus depreciation was not available.Paul sells the machine in 2014.The depreciation on the computer for 2014 is

• A)$0.
• B)$1,440.
• C)$1,500.
• D)$2,880.

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Definitions:

Indirect Method

The indirect method is an accounting practice used in cash flow statements where net income is adjusted for non-cash transactions and changes in working capital to calculate cash flow from operating activities.

Cash Flows

The aggregate value of cash inflows and outflows within a corporation, significantly influencing its cash on hand.

Cash Flow Amounts

The total values of cash and cash-equivalents being transferred into and out of a business.

Timing

The selection of the best moment or speed at which to execute an action or operation.