Reid Acquired Two Assets This Year: Computer Equipment (5-Year Property)

question 76

Short Answer

Reid acquired two assets this year: computer equipment (5-year property) acquired on August 6th with a basis of $500,000 and machinery (7-year property) on November 9th with a basis of $500,000. Assume that Reid has sufficient income to avoid any limitations. Calculate the maximum depreciation expense including §179 expensing (but not bonus expensing). Assume the 2013 §179 limits are extended to 2014.

Identify the legal framework governing the use of checks, including the rights and obligations of parties involved.

Explain the principles of electronic funds transfers (EFT) including the types of EFT systems.

Comprehend consumer rights and liabilities under the Electronic Funds Transfer Act (EFTA).

Grasp the concepts of final payment, dishonor of checks, and the effects on the parties involved.

---

Definitions:

Paul Farmer

An American anthropologist and physician who was a pioneer in global health, focusing on treating infectious diseases in impoverished communities.

Anthropology

The study of humankind in all times and places.

Human Rights

The fundamental rights and freedoms that every person is entitled to, regardless of nationality, sex, ethnicity, religion, or any other status, including rights to life, liberty, and the pursuit of happiness.

Margaret Mead

An American cultural anthropologist known for her studies and publications on the socialization of children and culture in the South Pacific and Southeast Asia.