Sairra, LLC Purchased Only One Asset During the Current Year

question 75

Multiple Choice

Sairra, LLC purchased only one asset during the current year (a full 12-month tax year) . Sairra placed in service furniture (7-year property) on April 16 with a basis of $25,000.
Calculate the maximum depreciation expense for the current year? (ignoring §179 and bonus depreciation) . (Use MACRS Table 1) (Round final answer to the nearest whole number.)

• A) $1,786.
• B) $3,573.
• C) $4,463.
• D) $5,000.
• E) None of the choices are correct.

---

Definitions:

Equilibrium

A state of physical balance or a stable situation in which all forces are equal.

Two-Point Threshold

The minimum distance at which two points of contact can be felt as two distinct stimuli.

Gestalt

A concept in psychology that emphasizes the idea that the whole of anything is greater than its parts, focusing on patterns and configurations in perceiving objects.

Psychoanalysis

A therapeutic approach and theory of personality developed by Sigmund Freud that emphasizes unconscious motivations and conflicts.