Lax, LLC Purchased Only One Asset During the Current Year

question 24

Multiple Choice

Lax, LLC purchased only one asset during the current year (a full 12-month tax year) . Lax placed in service computer equipment (5-year property) on August 26 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:

Neuron

A specific type of cell responsible for conveying nerve signals; also known as a neuron.

Message

An element of communication where information is sent from a sender to a recipient through various means.

Peripheral Nervous System

The segment of the nervous system comprising the nerves and neural clusters found beyond the brain and spinal cord.

Sensory Pathway Neurons

Nerve cells involved in the paths that sensory information travels from the sensory organs to the brain for processing.