Lax LLC Purchased Only One Asset During the Current Year

question 103

Multiple Choice

Lax LLC purchased only one asset during the current year (a full 12-month tax year) .On August 26 Lax placed in service computer equipment (five-year property) with a basis of $20,000. Calculate the maximum depreciation expense for the current year (ignoring §179 and bonus depreciation) . (Use MACRS Table 1.)

• A)$2,000
• B)$2,858
• C)$3,000
• D)$4,000
• E)None of the choices are correct.

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Definitions:

Body Parts

The distinct pieces or structures that make up the human or animal body.

Dehydroepiandrosterone

A steroid hormone produced by the adrenal glands that serves as a precursor to other important hormones like testosterone and estrogen.

Gonadotropin Releasing Hormone

A hormone produced in the brain that triggers the release of hormones involved in sexual development and reproduction.

Lutenizing Hormone

A hormone produced by the anterior pituitary gland that triggers ovulation and the development of the corpus luteum in females and testosterone production in males.