Deirdre's Business Purchased Two Assets During the Current Year (A

question 16

Multiple Choice

Deirdre's business purchased two assets during the current year (a full 12-month tax year) . Deirdre placed in service computer equipment (5-year property) on January 20 with a basis of $15,000 and machinery (7-year property) on September 1 with a basis of $15,000. Calculate the maximum depreciation expense, (ignoring §179 and bonus depreciation) . (Use MACRS Half-Year Convention) (Round final answer to the nearest whole number.)

• A) $1,286.
• B) $5,144.
• C) $5,786.
• D) $6,000.
• E) None of the choices are correct.

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Definitions:

Oxytocin

A hormone and neurotransmitter involved in childbirth and lactation, also playing a role in social bonding and trust.

Prostaglandins

A group of physiologically active lipid compounds having diverse hormone-like effects, such as regulating inflammation and body temperature.

Cortisol

A steroid hormone, secreted by the adrenal cortex, that helps the body adjust to long-term stress; stimulates conversion of other nutrients to glucose in the liver, resulting in increased blood glucose concentration.

Progesterone

A steroid hormone secreted by the corpus luteum of the ovary and by the placenta, which acts to prepare the uterus for implantation of the fertilized egg.