5. You are a private consultant and purchased a new computer valued at $3,000. You decide to use the Section 179 method for the computer you purchased as this is the only equipment purchase for the year. (a) What is the 1st year depreciation amount? 10.8. EVALUATIVE QUESTIONS 165 (b) What is the 2nd year depreciation amount?

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.