Roth LLC Purchased Only One Asset During the Current Year

question 105

Essay

Roth LLC purchased only one asset during the current year.On August 1st Roth placed in service office equipment (seven-year property)with a basis of $42,500.Calculate the maximum depreciation expense (ignoring §179 and bonus depreciation).(Use MACRS Half-Year Convention Table.)(Round final answer to the nearest whole number.)

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Definitions:

Real Wage

The amount of goods and services a worker can purchase with his or her nominal wage; the purchasing power of the nominal wage.

Agency Shops

A workplace agreement where employees, whether or not they are union members, must pay union fees for the bargaining services the union provides.

Open Shops

Workplaces where union membership is not required as a condition of employment.

Wage Rates

The amount of compensation paid to employees for their labor, measured per unit of time or piece of work done.