Question 5.

5 Bonnie purchased a camera (5-year property) for use in her sole proprietorship. The basis of the camera was $3,000. Bonnie used the camera in her business 80 percent of the time and used it for personal purposes the rest of the time during the first year. Ignoring bonus depreciation, calculate Bonnie's depreciation expense during the first year assuming the sole proprietorship had a loss during the year. (Use MACRS Table 1.) Multiple Choice O $120 O $240 $480 $600 O None of the choices are correct. 20-Year 3.750% 7.219 6.677 6.177 5.713 5.285 4.888 4.522 4.462 Table 1 MACRS Half-Year Convention Depreciation Rate for Recovery Period 3-Year 5-Year 7-Year 10-Year 15-Year Year 1 33.33% 20.00% 14.29% 10.00% 5.00% Year 2 44.45 32.00 24.49 18.00 9.50 Year 3 14.81 19.20 17.49 14.40 8.55 Year 4 7.41 11.52 12.49 11.52 7.70 Year 5 11.52 8.93 9.22 6.93 Year 6 5.76 8.92 7.37 6.23 Year 7 8.93 6.55 5.90 Year 8 4.46 6.55 5.90 Year 9 6.56 5.91 Year 10 6.55 5.90 Year 11 3.28 5.91 Year 12 5.90 Year 13 5.91 Year 14 5.90 Year 15 5.91 Year 16 2.95 Year 17 Year 18 Year 19 Year 20 Year 21 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 2.231