On April 12,2013,Suzanne Bought a Computer for $20,000 for Business

question 84

Multiple Choice

On April 12,2013,Suzanne bought a computer for $20,000 for business use.This was the only purchase for that year.Suzanne used the most accelerated depreciation method available but did not elect Sec.179.Bonus depreciation was not available.Suzanne sells the machine in 2014.The depreciation on the computer for 2014 is

• A)$2,000.
• B)$3,200.
• C)$4,000.
• D)$6,400.

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Definitions:

Holding Period

The length of time an investment is held by an investor, influencing tax treatment of gains or losses upon disposal.

Adjusted Basis

The net cost of an asset after adjusting for various tax-related items including improvements, sales, depreciation, and damage.

Assumes Liability

The act of taking on legal responsibility or debt from another party, often occurring in business acquisitions or financial agreements.

Amount Realized

The total sum received from a transaction, including money and the fair market value of any property or services received, before subtracting any costs.