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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Definitions:

Obesity

A medical condition characterized by the accumulation of excess body fat to the extent that it may have a negative effect on health, leading to increased risks of various diseases and health problems.

Sudden Unexpected

Events or occurrences that take place without warning and are unforeseen or unanticipated.

Infant Deaths

The demise of a baby before his or her first birthday, often caused by birth defects, preterm birth, maternal complications, or Sudden Infant Death Syndrome (SIDS).

In Vitro Fertilization

A medical procedure whereby an egg is fertilized by sperm in a lab dish, after which the embryo is transferred to a uterus.