Anne LLC purchased computer equipment (5-year property) on August 29 for $48,000 and used the half-year convention. Anne LLC did not take 179 or bonus depreciation in the year it acquired the computer equipment. During the current year, which is the fourth year Anne LLC owned the property, the property was disposed of on January 15. Calculate the maximum depreciation expense. (Use MACRS Table 1)

Multiple Choice

$691.

$2,765.

$3,000.

$5,530.

None of the choices are correct.

Bonnie Jo purchased a used camera (5-year property) for use in her sole proprietorship. The basis of the camera was $3,500. Bonnie Jo used the camera 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): (Use MACRS Table 1)

Multiple Choice

$350.

$420.

$700.

$3,500.

None of the choices are correct.