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:

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors when using the same amount of resources.

Skilled Human Resources

Individuals within the workforce who possess specialized training, knowledge, and experience in particular fields or disciplines.

Per Capita Incomes

The average income earned per person in a certain area in a specified year.

Developing Nations

Countries with a lower living standard, underdeveloped industrial base, and low Human Development Index relative to other countries.