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:

Myxedema

A condition resulting from the hypofunction of the thyroid gland.

Thyroid Hormone

Hormones produced by the thyroid gland, important for regulation of metabolism, energy generation, and neuromuscular function.

Pituitary Hormone

Hormones secreted by the pituitary gland, which is located at the base of the brain and plays a crucial role in regulating growth and metabolism, among other functions.

Testosterone

A male hormone secreted by the testes that causes and maintains male secondary sex characteristics.