In November 2013,Kendall Purchases a Computer for $4,000

question 61

Multiple Choice

In November 2013,Kendall purchases a computer for $4,000.She does not use Sec.179 or bonus depreciation.She only uses the most accelerated depreciation method possible.The computer is the only personal property which she places in service during the year.What is her total depreciation deduction for 2013?

• A)$200
• B)$572
• C)$800
• D)$1,000

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Definitions:

Specified Goods

Items that are explicitly defined or identified in a transaction or contract.

Contract

An agreement based on mutual promises between two or more competent parties to do or to refrain from doing some particular thing that is neither illegal nor impossible. The agreement results in an obligation or a duty that can be enforced in a court of law.

Warranty of Fitness

An assurance that a product or service is suitable for the specific purpose for which it was bought, often implied in sales contracts.

Bicycle Shop

A retail business specializing in the sale, repair, and sometimes rental of bicycles and related accessories and components.