Taxpayer K purchased a used stereo system for $12,000 in May.K uses the system 20 hours each week for her business as a music critic, and she and her family use it 30 hours each week for educational and personal purposes.How much may K claim in deductions for depreciation and current expenses associated with the system? (Assume that stereo equipment has a recovery period of five years, regardless of the depreciation method employed.)
A) $0 depreciation, $0 expensed
B) $80 depreciation, $4,000 expensed
C) $0 depreciation, $4,800 expensed
D) $480 depreciation, $0 expensed
E) $960 depreciation, $0 expensed
Correct Answer:
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