Lax,LLC purchased only one asset during the current year (a full 12-month tax year).Lax placed in service computer equipment (5-year property)on August 26 with a basis of $20,000.Calculate the maximum depreciation expense for the current year (ignoring §179 and bonus depreciation).(Use MACRS Table 1 in the text)
A) $2,000.
B) $2,858.
C) $3,000.
D) $4,000.
E) None of the choices are correct.

Question

Lax,LLC purchased only one asset during the current year (a full 12-month tax year).Lax placed in service computer equipment (5-year property)on August 26 with a basis of $20,000.Calculate the maximum depreciation expense for the current year (ignoring §179 and bonus depreciation).(Use MACRS Table 1 in the text)
A) $2,000.
B) $2,858.
C) $3,000.
D) $4,000.
E) None of the choices are correct.

Quizplus · Accepted Answer

The Answer of Lax,LLC purchased only one asset during the current year (a full 12-month tax year).Lax placed in service computer equipment (5-year property)on August 26 with a basis of $20,000.Calculate the maximum depreciation expense for the current year (ignoring §179 and bonus depreciation).(Use MACRS Table 1 in the text)
A) $2,000.
B) $2,858.
C) $3,000.
D) $4,000.
E) None of the choices are correct.

Lax,LLC Purchased Only One Asset During the Current Year (A