Sairra, LLC Purchased Only One Asset During the Current Year

question 81

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, rounding to a whole number (ignoring §179 and bonus depreciation) :

• A) $1,786
• B) $3,573
• C) $4,463
• D)$5,000
• E)None of these

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Definitions:

Subscription Price

The cost that investors pay to acquire securities during an offering before they are available on the open market.

Rights-On Period

A specific time frame during which shareholders have the right to buy additional shares at a predetermined price before the offer is open to others.

Common Share Price

The market price at which a company's common stock is traded on the stock exchange.

Direct Costs

Expenses that can be directly traced to the production of a specific good or service, such as materials and labor.