Bonnie Jo purchased a used camera (five-year property) for use in her sole proprietorship. The basis of the camera was $3,000. 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 deduction 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.)

Respuesta :

Answer:

$360

Explanation:

The computation of the depreciation deduction during the first year is shown below:

= Basis of the camera × given percentage × weightage

= $3,000 × 60% × 20%

= $360

Since the 60% is used for business and 40% used for personal

And there is a recovery period of assets of 5 years so  half year convention period applies