Lax, LLC Purchased Only One Asset During the Current Year

question 6

Multiple Choice

Lax, LLC purchased only one asset during the current year (a full 12-month tax year) . Lax placed in service computer equipment (5-year property) on August 26 with a basis of $20,000. Calculate the maximum depreciation expense for the current year (ignoring §179 and bonus depreciation) :

• A) $2,000
• B) $2,858
• C) $3,000
• D)$4,000
• E)None of these

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