Mike Purchases a Computer (5-Year Property)for $3,000 During the Current

question 80

Multiple Choice

Mike purchases a computer (5-year property) for $3,000 during the current year.He uses the computer 40% of the time in his consulting business.Mike would like to maximize his cost recovery deduction.What is his allowable cost recovery deduction on the computer?

• A)$- 0 -
• B)$120
• C)$180
• D)$300
• E)$1,200

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Definitions:

Sales Tax

Sales tax is a tax levied by governments on the sale of goods and services, typically calculated as a percentage of the sales price.

General Journal Entry

A record of financial transactions in the order in which they occur, used as the basis for all other financial reports.

Sales Tax

A government-imposed charge on the sale of goods and services.

General Journal Entries

The initial records of financial transactions, entered in the general journal, before they are posted to specific accounts in the general ledger.