Flax, LLC Purchased Only One Asset This Year

question 38

Essay

Flax, LLC purchased only one asset this year. Flax placed in service a computer (5-year property) on January 16 with a basis of $14,000. Calculate the maximum depreciation expense (ignoring §179 and bonus depreciation). (Use MACRS Table 1)

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Definitions:

Virtualization Support

A BIOS/UEFI option to enable or disable the capability of the computer to be used in a virtualization environment where more than one operating system can share the same hardware resources.

Hyper-V

A virtualization technology developed by Microsoft that allows for the creation and management of virtual machines on a Windows-based platform.

Clock Speed

The rate at which timing signals are sent to motherboard components (normally measured in MHz).

Single-Threaded Task

A single-threaded task is executed by a computer processor using a single sequence of instructions, meaning tasks are completed one at a time.