Bonnie Jo Purchased a Used Camera (Five-Year Property)for Use in Her

question 120

Multiple Choice

Bonnie Jo purchased a used camera (five-year property) for use in her sole proprietorship. The basis of the camera was $2,400. Bonnie Jo used the camera in her business 60 percent of the time and used it for personal purposes the rest of the time during the first year. Calculate Bonnie Jo's depreciation deduction during the first year, assuming the sole proprietorship had a loss during the year. (Bonnie did not place the property in service in the last quarter.) (Use MACRS Table 1.)

• A)$240
• B)$288
• C)$480
• D)$2,400
• E)None of the choices are correct.

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Definitions:

Means

The average values obtained by dividing the sum of all observations by the number of observations.

Bootstrapping Process

A statistical resampling method used to approximate the distribution of a statistic by repeatedly sampling with replacement from the observed data.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, represented by the square root of the variance.

Sampling Distribution

A statistical distribution of all possible sample means or proportions, given a sample size, from a population.