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

question 59

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) :

• A) $0
• B) $48
• C) $192
• D) $336
• E) None of these

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Definitions:

Foreclosures

Legal process by which a lender takes control of a property due to failure of the borrower to meet the terms of the mortgage.

Virginia Plan

A proposal at the Constitutional Convention that called for a strong central government with a bicameral legislature dominated by the most populous states.

Edmund Randolph

An American attorney and politician who served as the first Attorney General of the United States and the seventh Governor of Virginia.

National Executive

The branch of government, or individuals within it, tasked with enforcing laws and managing the administration of a country.