Bonnie Jo Purchased a Used Computer (5-Year Property)for Use in Her

question 6

Multiple Choice

Bonnie Jo purchased a used computer (5-year property) for use in her sole proprietorship.The basis of the computer was $2,400.Bonnie Jo used the computer in her business 60 percent of the time and used it for personal purposes the rest of the time during the first year.Calculate Bonnie Jo's depreciation expense during the first year assuming the sole proprietorship had a loss during the year (Bonnie did not place the property in service in the last quarter) .(Use MACRS Table 1)

• A) $240.
• B) $288.
• C) $480.
• D) $2,400.
• E) None of the choices are correct.

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Definitions:

Opportunity Cost

The potential benefits missed out on when choosing one alternative over another.

Oversight

The action of overseeing or supervising, often used in the context of governmental bodies monitoring and regulating institutions to ensure they are complying with laws and policies.

Legislative Branches

Components of government responsible for enacting the laws of the state, such as parliaments or congresses, consisting of elected representatives.

Executive Branches

Parts of government responsible for implementing and enforcing laws, led by the President at the federal level and governors at the state level in the United States.