Suvi, Incorporated Purchased Two Assets During the Current Year (A

question 35

Multiple Choice

Suvi, Incorporated purchased two assets during the current year (a full 12-month tax year) .On August 10 Suvi placed in service computer equipment (five-year property) with a basis of $20,000 and on November 18 placed in service machinery (seven-year property) with a basis of $10,000. Calculate the maximum depreciation expense (ignoring §179 and bonus depreciation) . (Use MACRS Table 1.) (Round final answer to the nearest whole number.)

• A)$857
• B)$3,357
• C)$5,429
• D)$6,000
• E)None of the choices are correct.

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Definitions:

Crop-Lien System

A credit system used in the Southern United States after the Civil War, where farmers borrowed against future crop yields, leading to debt and economic dependency.

Natural-Resource Frontier

Areas yet to be explored or developed that are rich in natural resources, such as minerals, forests, and water bodies, offering potential for economic development.

Extraction Rights

Legal permissions granted to companies or individuals to extract natural resources such as minerals, oil, or gas from the land.

Federal Government

The national government of a federal country, where powers are divided between the central government and the states or provinces.