A company purchases a new computer for use by the company's controller. The company plans on using the computer for only 3 years. The computer cost $2,400. We need to review some data.

The computer will be worth $600 at the end of 3 years. The computer will be donated to a charity at the end of this period.

What is the asset's basis?

What is the economic life of the asset?

Which method should be used?