An Asset Is Placed in Service on May 15,2017 and Has

question 74

Multiple Choice

An asset is placed in service on May 15,2017 and has a depreciable basis of $40,000.The asset is in the 7-year recovery class and the half-year convention applies.What is the maximum depreciation deduction that may be claimed for 2017,excluding the election to expense and bonus depreciation?

• A)$2,572
• B)$5,144
• C)$5,716
• D)$25,000
• E)None of the above

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Definitions:

Collecting Duct

Duct within the kidney that receives fluid from several nephrons; the reabsorption of water occurs here.

Proximal Convoluted Tubule

Portion of a nephron following the glomerular capsule where tubular reabsorption of filtrate occurs.

Glomerular Filtrate

The fluid that is filtered from the blood through the glomeruli of the kidney during the formation of urine.

Metabolically Important Substances

Chemical compounds or elements that play crucial roles in the metabolic processes of organisms, including nutrients, enzymes, and hormones.