Bonnie Jo Used Two Assets During the Current Year

question 41

Essay

Bonnie Jo used two assets during the current year.The first was computer equipment with an original basis of $15,000, currently in the second year of depreciation and depreciated under the half-year convention.This asset was disposed of on October 1st of the current year.The second was furniture with an original basis of $24,000, placed in service during the first quarter, currently in the fourth year of depreciation, and depreciated under the mid-quarter convention.What is Bonnie Jo's depreciation deduction for the current year? (Round final answer to the nearest whole number.)(Use MACRS Table 1 and Table 2.)

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Definitions:

Fallacy of Composition

The error of assuming that what is true of a part is necessarily true of the whole.

Prosperity

A state of economic well-being characterized by high levels of income, employment, and production.

Depression

A severe and prolonged reduction in economic activity as occurred during the 1930s

Scarce Resources

Natural, human, and capital resources that are limited in supply, which necessitates choices about how they are allocated.