Fonzi Purchases a Personal Computer for $4,000 on March 19,2017

question 23

Essay

Fonzi purchases a personal computer for $4,000 on March 19,2017.He used it personally for correspondence,keeping track of personal finances,and on-line data base services.His children used it for schoolwork and games.On June 1,2017,Fonzi starts a new secretarial service business and he converts the personal computer to 100% business use.The computer is worth $2,500 at the time (similar computers were selling for that amount in the used-computer market).
a.What is Fonzi's depreciable basis? Briefly explain your reasoning.
b.Fonzi desires to minimize depreciation deductions on the computer.What is the minimum allowable depreciation for 2017?

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Definitions:

Trimester

One of the three approximately three-month periods into which pregnancy is divided.

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Ultrasound Scan

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