Sairra LLC Purchased Only One Asset During the Current Year

question 127

Multiple Choice

Sairra LLC purchased only one asset during the current year (a full 12-month tax year) . On April 16 Sairra placed in service furniture (seven-year property) with a basis of $25,000. Calculate the maximum depreciation expense for the current year (ignoring §179 and bonus depreciation) . (Use MACRS Table 1.) (Round final answer to the nearest whole number.)

• A)$1,786
• B)$3,573
• C)$4,463
• D)$5,000
• E)None of the choices are correct.

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Definitions:

Independent

Not influenced by or contingent on something else; in statistics, two events are independent if the occurrence of one does not affect the probability of the other.

Organic Product

A chemical compound or substance that has been synthesized through an organic reaction, which can include a wide variety of chemical species.

Reaction

A process in which one or more substances, the reactants, are converted to one or more different substances, the products, via a chemical change.

Dilute Acid

An acid solution that has a low concentration of hydrogen ions compared to its amount of solvent, typically water.