Nancy Purchased a Computer on July 15, 2015, for $5,000

question 61

Essay

Nancy purchased a computer on July 15, 2015, for $5,000. The computer was used 70% of the time in her business and the rest of the time her children used the computer to surf the Web. In 2016, the computer was used 40% for business and 60% for personal use. What are the cost recovery deductions for 2015 and 2016? (No §179 or bonus). Is there any recapture of depreciation in 2016?

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Definitions:

Roller Bearings

Bearings that use cylindrical or spherical rollers positioned between two races to reduce friction and support radial and axial loads.

Needle Bearings

A type of roller bearing with long, thin cylindrical rollers resembling needles, used in applications with limited space and high load capacity.

Journal Bearings

Journal bearings are a type of plain bearing that support radial loads by enclosing the shaft along its length, offering a smooth, lubricated surface for the shaft to rotate within.

Sleeve Bearings

Bearings consisting of a cylindrically shaped liner that allows for relative motion by sliding, used in various machinery for rotational or sliding movements.