Fonzi Purchases a Personal Computer for $4,000 on March 19

Essay

Fonzi purchases a personal computer for $4,000 on March 19, 2018. He used it personally for correspondence, keeping track of personal finances, and on-line data base services. His children used it for schoolwork and games. On June 1, 2018, Fonzi starts a new secretarial service business and he converts the personal computer to 100% business use. The computer is worth $2,500 at the time (similar computers were selling for that amount in the used-computer market).
a.What is Fonzi's depreciable basis? Briefly explain your reasoning.
b.Fonzi desires to minimize depreciation deductions on the computer. What is the minimum allowable depreciation for 2018??