Question
Assume that Ernesto purchased a laptop computer on July 10 of year 1 for $3,000. In year 1, 80 percent of his computer usage was
Assume that Ernesto purchased a laptop computer on July 10 of year 1 for $3,000. In year 1, 80 percent of his computer usage was for his business and 20 percent was for computer gaming with his friends. This was the only asset he placed in service during year 1. Ignoring any potential 179 expense and bonus depreciation, answer the questions for each of the following alternative scenarios: Use the MACRS Table a. What is Ernesto's depreciation deduction for the computer in year 1? b. What is Ernesto's depreciation deduction for the computer in year 1? a. What is Ernesto's depreciation deduction for the computer in year 1?
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