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.

---

Definitions:

Cost Of Material

The expense incurred from acquiring the raw materials needed to manufacture a product or complete a project.

Dual System

A system that combines two different methodologies, structures, or principles, often seen in education or governance.

Single-Party Marketing

Marketing strategies or campaigns that are conceptualized and executed by a single organization, without collaboration with other parties.

Professional Revenue Model

A framework that outlines how a business intends to generate income through its professional services or offerings.