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

question 8

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) :

• A) $240
• B) $288
• C) $480
• D) $2,400
• E) None of these

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Definitions:

Regression Coefficient

A value that represents the amount by which a dependent variable changes when a related independent variable changes by one unit.

Regression

A statistical method used to determine the relationship between a dependent variable and one or more independent variables.

Variance

Average squared deviation from the mean.

Degrees Freedom

Degrees of freedom refer to the number of independent values or quantities which can be assigned to a statistical distribution or to the number of variables minus the number of constraints in a system.