Wheeler LLC Purchased Two Assets During the Current Year (A

question 37

Multiple Choice

Wheeler LLC purchased two assets during the current year (a full 12-month tax year) . Wheeler placed in service computer equipment (5-year property) on November 16 with a basis of $15,000 and furniture (7-year property) on April 20 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:

Shareholders

Individuals or entities that own shares in a corporation, giving them rights to dividends and a say in corporate affairs.

Board of Directors

A group of individuals elected to represent shareholders and make governing decisions on behalf of a corporation.

Enforcement Rights

The legal ability to ensure compliance or to compel individuals or entities to adhere to agreed terms, laws, or obligations.

Shareholder's Interest

The stake or concern a shareholder has in the success and well-being of a company, often reflected by the value of their shares.