On July 2, 2018, a taxpayer placed in service a new computer that cost $4,000. The...

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On July 2, 2018, a taxpayer placed in service a new computer that cost $4,000. The computer is used 100% for business. No Sec

business accounting

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Answer 1

Answer #1

The Answer is E. $ 640

Calculation:

Cost of New Computer	$ 4,000
Less:
50% Bonus Depreciation	$ (2,000)
Adjusted Basis for Depreciation	$ 2,000
2018 Depreciation Expenses[2000*20%]	$ 400
*2019 Depreciation Expenses[200032%]**	$ 640

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Answer 2

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