Billie Bob Purchased a Used Computer (5-Year Property)for Use in His

question 8

Multiple Choice

Billie Bob purchased a used computer (5-year property) for use in his sole proprietorship in the prior year.The basis of the computer was $2,400.Billie Bob used the computer in his business 60 percent of the time during the first year.During the second year,Billie Bob used the computer 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 in the text)

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

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Definitions:

Contract Condition

A provision in a contract that specifies a requirement or event that must occur or be met for the contract or a part of it to be fulfilled or enforced.

Discharged

In legal terms, refers to the completion or termination of an obligation, such as a debt or duty, often resulting in release from responsibility.

Discharge a Contract

The termination of a contractual obligation, either through fulfillment of the contract terms, mutual agreement, or other legal means.

Material Breach

A significant violation or failure to meet a contractual agreement, justifying termination of the contract by the other party.