Curt's Consulting Company purchased a laptop computer on February 15, 2020 for $2,000. The laptop was destroyed in a fire on April 30, 2020 and Curt's Consulting received $500 in compensation from the insurance company. It was the only asset in the CCA Class as all computer equipment has been leased for the last two years. The effect on Net Income For Tax Purposes for the year ending December 31, 2020 is:
A)$550 decrease.
B)$412.50 decrease.
C)$2,000 decrease.
D)$1,500 decrease.

Question

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The Answer of Curt's Consulting Company purchased a laptop computer on February 15, 2020 for $2,000. The laptop was destroyed in a fire on April 30, 2020 and Curt's Consulting received $500 in compensation from the insurance company. It was the only asset in the CCA Class as all computer equipment has been leased for the last two years. The effect on Net Income For Tax Purposes for the year ending December 31, 2020 is:
A)$550 decrease.
B)$412.50 decrease.
C)$2,000 decrease.
D)$1,500 decrease.

Curt's Consulting Company Purchased a Laptop Computer on February 15