Lax,LLC Purchased Only One Asset During the Current Year (A

question 40

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 in the text)

• A) $2,000.
• B) $2,858.
• C) $3,000.
• D) $4,000.
• E) None of the choices are correct.

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Definitions:

Homeostasis

The process by which biological systems maintain a stable internal environment despite changes in external conditions.

Control Center

A central part of a system, such as the brain in the human body, that regulates the body's responses to stimuli and maintains homeostasis.

Pancreas

The pancreas is a glandular organ in the digestive and endocrine system that produces enzymes and hormones, including insulin, to regulate blood sugar levels.