Joe Started a New Business This Year

Multiple Choice

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.