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:

Insoluble Material

Substances that cannot dissolve in a solvent, such as water, remaining solid and separated from the liquid mixture.

Drinking Water Standards

Regulatory benchmarks set to ensure the safety and quality of water for human consumption.

Concentration

The amount of a given substance in a specified volume or mass of a solution or mixture.

Groundwater

Water that is found underground in the cracks and spaces in soil, sand, and rock, an important source of water for wells and springs.