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. Calculate Bonnie’s depreciation expense during the first year assuming the sole proprietorship had a loss during the year:

Respuesta :

Answer$480

Explanation:

The business only take charges of 80% of camera basis that was used for it.

$3000* .8

=2400

Divided by the asset estimated life of 5years

=2400/5

=480