Colleen Operates a Business as a Sole Proprietorship

question 121

Multiple Choice

Colleen operates a business as a sole proprietorship. She purchased a computer for $10,000 last year. The computer is five-year recovery property for MACRS purposes and is depreciated under the regular MACRS rules. This year, Colleen incorporates the business and transfers the computer to the new corporation on July 20. The depreciation on the computer for this year allocable to the sole proprietorship is

• A)$1,868.
• B)$1,600.
• C)$1,333.
• D)$500.

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Definitions:

Demand

The desire or need for products, services, or resources combined with the ability and willingness to pay for them.

Food Deprivation

A condition resulting from lack of food intake, leading to physical and psychological effects and often used in experiments to motivate behaviors in animals.

Eyeblink Response

A reflex action where the eyelids close rapidly to protect the eyes, typically triggered by sudden stimuli.

Guthrie

Refers to Edwin Ray Guthrie, a psychologist known for his "one-trial learning" theory, proposing that learning occurs in a single association between stimulus and response.