Wheeler LLC Purchased Two Assets During the Current Year (A

question 11

Multiple Choice

Wheeler LLC purchased two assets during the current year (a full 12-month tax year) .On November 16 Wheeler placed in service computer equipment (five-year property) with a basis of $15,000 and on April 20 placed in service furniture (seven-year property) with a basis of $11,000. Calculate the maximum depreciation expense (ignoring §179 and bonus depreciation) . (Use MACRS Table 2.) (Round final answer to the nearest whole number.)

• A)$1,285
• B)$2,714
• C)$4,572
• D)$5,200
• E)None of the choices are correct.

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Definitions:

Cost Of Production Report

A document detailing the total cost involved in manufacturing goods, including materials, labor, and overhead expenses.

Finished Goods

Finished goods are completed products ready for sale.

Cost Of Production Report

A detailed statement showing the total production costs for a period and the cost per unit produced.

Equivalent Units

A concept used in cost accounting to express the amount of materials or labor in terms of fully completed units of production.