Sairra,LLC purchased only one asset during the current year (a full 12-month tax year).Sairra placed in service furniture (7-year property)on April 16 with a basis of $25,000.Calculate the maximum depreciation expense for the current year? (ignoring §179 and bonus depreciation).(Use MACRS Table 1 in the text)(Round final answer to the nearest whole number)
A) $1,786.
B) $3,573.
C) $4,463.
D) $5,000.
E) None of the choices are correct.

Question

Sairra,LLC purchased only one asset during the current year (a full 12-month tax year).Sairra placed in service furniture (7-year property)on April 16 with a basis of $25,000.Calculate the maximum depreciation expense for the current year? (ignoring §179 and bonus depreciation).(Use MACRS Table 1 in the text)(Round final answer to the nearest whole number)
A) $1,786.
B) $3,573.
C) $4,463.
D) $5,000.
E) None of the choices are correct.

Quizplus · Accepted Answer

Using the MACRS 7-year property table, the first-year depreciation rate is 14.29%. Therefore, $25,000 * 14.29% = $3,573.

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