Deirdre's Business Purchased Two Assets During the Current Year

question 33

Multiple Choice

Deirdre's business purchased two assets during the current year.It placed in service computer equipment (5-year property) on January 20 with a basis of $15,000 and machinery (7-year property) on October 1 with a basis of $15,000.Calculate the maximum depreciation expense,rounded to a whole number (ignoring §179 and bonus depreciation) :

• A)$1,286
• B)$5,144
• C)$5,786
• D)$6,000
• E)None of these

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Definitions:

Technological Advance

The development and application of innovative processes, equipment, or software that enhances productivity, efficiency, or quality.

Farmers

Individuals or entities engaged in the activity of agriculture, which includes the cultivation of plants and rearing of animals for food, fiber, biofuel, medicines, and other products used to sustain and enhance human life.

Optimal Allocation

The most efficient distribution of resources within an economy to maximize the output or welfare.

MB = MC

A principle in economics indicating the optimal level of output or consumption, where the marginal benefit (MB) equals the marginal cost (MC).