Lax LLC Purchased Only One Asset During the Current Year

question 81

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 $32,000. Calculate the maximum depreciation expense for the current year (ignoring §179 and bonus depreciation) . (Use MACRS Table 1.)

• A) $4,400
• B) $5,258
• C) $5,400
• D) $6,400
• E) None of the choices are correct.