Billie Bob Purchased a Used Computer (5-Year Property) for Use

question 59

Multiple Choice

Billie Bob purchased a used computer (5-year property) for use in his sole proprietorship in the prior year. The basis of the computer was $2,400. Billie Bob used the computer in his business 60 percent of the time during the first year. During the second year, Billie Bob used the computer 40 percent for business use. Calculate Billie Bob's depreciation expense during the second year assuming the sole proprietorship had a loss during the year (Billie Bob did not place the asset in service in the last quarter) :

• A) $0
• B) $48
• C) $192
• D) $336
• E) None of these

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Definitions:

Private Sector

The part of an economy that is owned and operated by private individuals and businesses, as opposed to the government.

Public Sector

The part of the economy that is controlled by the government, including various public services and enterprises.

Majority Voting

A process of making decisions in which the choice that secures a majority of the votes over 50% is selected.