On November 3,this Year,Kerry Acquired and Placed into Service 7-Year

question 10

Multiple Choice

On November 3,this year,Kerry acquired and placed into service 7-year business equipment costing $80,000.In addition,on May 5th of this year,Kerry had also placed in business use 5-year recovery property costing $15,000.Kerry did not elect Sec.179 immediate expensing,and the assets are not eligible for bonus depreciation.No other assets were purchased during the year.The depreciation for this year is

• A)$3,606.
• B)$6,606.
• C)$13,576.
• D)$14,432.

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Definitions:

Commercial Tenants

Businesses or individuals that lease or rent commercial property or space from a landlord for business purposes.

Lease Agreement

A contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset for a specified time period.

Fee Simple Absolute

The most complete form of property ownership, giving the owner unrestricted rights to the property, including selling, leasing, or bequeathing.

Conditional Estate

A type of property ownership that is subject to certain conditions or event occurrences; failure to meet these may result in forfeiture of the property.