Billie Bob Purchased a Used Camera (5-Year Property) for Use

question 25

Multiple Choice

Billie Bob purchased a used camera (5-year property) for use in his sole proprietorship in the prior year. The basis of the camera was $2,400. Billie Bob used the camera in his business 60 percent of the time during the first year. During the second year, Billie Bob used the camera 40 percent for business use. Calculate Billie Bob's depreciation expense during the second year assuming the sole proprietorship had a loss during the year (Billie Bob did not place the asset in service in the last quarter) . (Use MACRS Table 1)

• A) $0.
• B) $48.
• C) $192.
• D) $336.
• E) None of the choices are correct.

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Definitions:

Certain Environment

An environment that offers complete information on possible action alternatives and their consequences.

Probabilities

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Crisis Management

The process by which an organization deals with a disruptive and unexpected event that threatens to harm the organization or its stakeholders.

Cognitive Styles

The preferred way an individual processes information, often influencing learning, problem-solving, and decision-making.