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Assume that Ernesto purchased a laptop computer on July 10 of year 1 for $3,000. In year 1, 80 per cent of his computer usage was for his business and 20 per cent was for computer gaming with his friends. This was the only asset he placed in service during year 1. Ignoring any potential §179 expense and bonus depreciation, answer the questions for each of the following alternative scenarios: A. What is Ernesto’s depreciation deduction for the computer in year 1? B. What would be Ernesto’s depreciation deduction for the computer in year 2 if his year 2 usage was 75 per cent business and 25 per cent for computer gaming? C. What would be Ernesto’s depreciation deduction for the computer in year 2 if his year 2 usage was 45 per cent business and 55 per cent for computer gaming? D. What would be Ernesto’s depreciation deduction for the computer in year 2 if his year 2 usage was 30 per cent business and 70 per cent for computer gaming?
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