Beth's Business Purchased Only One Asset During the Current Year

question 106

Multiple Choice

Beth's business purchased only one asset during the current year (a full 12-month tax year) . Beth placed in service machinery (7-year property) on December 1 with a basis of $50,000. Calculate the maximum depreciation expense (ignoring §179 and bonus depreciation) . (Use MACRS Table 2)

• A) $1,785.
• B) $2,500.
• C) $7,145.
• D) $10,000.
• E) None of the choices are correct.

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Definitions:

Distribution

In statistics, the way in which data points are spread or distributed across a range of values.

Inventory Manager

A professional responsible for overseeing and managing a company's inventory, including ordering, storing, and distributing products.

Stock Boys

Individuals typically employed in retail establishments to stock merchandise and organize inventory.

Monthly Payroll

The total amount of wages paid by a business to its employees in one month.