Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 MACRS Table 1, Table 2.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)

a. What is Ernesto's depreciation deduction for the computer in year 1?

b. What would be Ernesto's depreciation deduction for the computer in year 2 if his year 2 usage was 75 percent business and 25 percent for computer gaming?

c. What would be Ernesto's depreciation deduction for the computer in year 2 if his year 2 usage was 45 percent business and 55 percent for computer gaming?

d. What would be Ernestos depreciation deduction for the computer in year 2 if his year 2 usage was 30 percent business and 70 percent for computer gaming?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting

Authors: Susan F. Haka ,Joseph V. Carcello ,Jan R. Williams

18th Edition

1259922189, 978-1259922183

More Books

Students also viewed these Accounting questions