Suvi, Inc Purchased Two Assets During the Current Year (A Full

question 35

Multiple Choice

Suvi, Inc. purchased two assets during the current year (a full 12-month tax year) . Suvi placed in service computer equipment (5-year property) on August 10 with a basis of $20,000 and machinery (7-year property) on November 18 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:

Pneumatic Brake Systems

Brake systems that utilize compressed air to generate the force applied to the brake pads or shoes, common in heavy-duty vehicles.

Compressibility of Air

A property of air that allows it to decrease in volume under pressure, playing a critical role in various pneumatic systems and applications.

6S/6M Highway Tractor ABS

Refers to an Anti-lock Braking System with 6 sensors and 6 modulators used on highway tractors to prevent wheel lockup during braking.

Accident Avoidance Electronics

Integrated systems in vehicles designed to prevent or reduce the severity of an accident through technologies like automatic braking, lane-keeping assist, and collision warnings.