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

---

Definitions:

Basic Needs

Fundamental requirements that serve as the foundation for survival, including food, water, shelter, and clothing.

Medicaid

A government healthcare program in the United States that provides health coverage to eligible low-income adults, children, pregnant women, elderly adults, and people with disabilities.

Social Insurance Program

A government-sponsored program that provides financial assistance to individuals in the form of retirement benefits, disability income, and other social security benefits.