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:

Beijing

The capital city of China, known for its rich historical sites including the Forbidden City and the Great Wall, as well as being a major hub for political, cultural, and educational activities.

Geumgangsan

A mountain located in North Korea, considered sacred and famous for its beautiful scenery, historic Buddhist temples, and art.

Jeong Seon

A prominent Korean landscape painter from the Joseon Dynasty, known for his true-view landscape paintings.

Korean Artist

An artist originating from Korea, which has a rich history in various art forms including painting, sculpture, and ceramics, across historical periods.