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.

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Definitions:

Decision Criteria

The standards or benchmarks used to evaluate options and make choices in the decision-making process.

Requesting Proposals

A process where an organization asks external parties to submit a plan or bid to complete a specific project or task.

Minimize Work

The process of reducing the amount of effort or resources required to complete a task or achieve a goal.

Maximizing Effectiveness

The act of making the best or most efficient use of resources, time, or effort to achieve a desired outcome.