Sairra LLC purchased only one asset during the current year (a full 12-month tax year). On April 16 Sairra placed in service furniture (seven-year property) with a basis of $30,000. Calculate the maximum depreciation expense for the current year (ignoring §179 and bonus depreciation). (Use MACRS Table 1.) (Round final answer to the nearest whole number.)

Question

Quizplus · Accepted Answer

Using the MACRS Table 1 for seven-year property, the depreciation rate for the first year is 14.29%. Therefore, the maximum depreciation expense is $30,000 * 14.29% = $4,287.

Sairra LLC Purchased Only One Asset During the Current Year