Joe started a new business this year.He had purchased a computer two years ago for $4,000 and decided to use it in his business until he could afford a new system.He could purchase a new computer with the same specifications for $1,800, but his used computer is worth only $1,100.What is his computer's basis for depreciation?
A)$1,100
B)$1,800
C)$4,000
D)The computer cannot be depreciated because it was a personal asset.

Question

Quizplus · Accepted Answer

The computer's basis for depreciation is its cost, which is $4,000.

Joe Started a New Business This Year