Wheeler LLC Purchased Two Assets During the Current Year (A

question 11

Multiple Choice

Wheeler LLC purchased two assets during the current year (a full 12-month tax year) . Wheeler placed in service computer equipment (5-year property) on November 16 with a basis of $15,000 and furniture (7-year property) on April 20 with a basis of $11,000. Calculate the maximum depreciation expense (ignoring §179 and bonus depreciation) . (Use MACRS Table 2) (Round final answer to the nearest whole number.)

• A) $1,285.
• B) $2,714.
• C) $4,572.
• D) $5,200.
• E) None of the choices are correct.

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Definitions:

Risk Premium

The extra amount of return demanded by investors for taking on a higher level of risk.

Volatility

A statistical measure of the dispersion of returns for a given security or market index, often used to gauge the risk involved in investing in that security or market.

Average Rate

is the mean interest rate in a range of rates, or the mean return of a portfolio of assets calculated over a specific period of time.

Semi-strong Form Efficiency

A concept in finance that suggests all public information is already accounted for in stock prices, thus making it impossible to consistently achieve higher returns through analysis of publicly available information.