Wheeler LLC purchased two assets during the current year (a full 12-month tax year). On November 16 Wheeler placed in service computer equipment(five-year property) with a basis of $20,500 and on April 20 placed in service furniture (seven-year property) with a basis of $14,300. Calculate themaximum depreciation expense (ignoring $179 and bonus depreciation). (Use MACRS Table 2.) (Round final answer to the nearest whole number.)24Multiple Choice$2,149$3,578$5,436$6,064None of the choices are correct. TABLE 2a MACRS Mid-Quarter Convention: For property placed in service during the first quarterDepreciation Rate for Recovery Period5-Year7-YearYear 135.00%25.00%Year 226.0021.43Year 315.6015.31Year 411.0110.93Year 511.018.75Year 61.388.74Year 78.75Year 81.09TABLE 2b MACRS Mid-Quarter Convention: For property placed in service during the second quarterDepreciation Rate for Recovery Period5-Year7-YearYear 125.00%17.85%Year 230.0023.47Year 318.0016.76Year 411.3711.97Year 511.378.87Year 64.268.87Year 78.87Year 83.34TABLE 2c MACRS Mid-Quarter Convention: For property placed in service during the third quarterDepreciation Rate for Recovery Period5-Year7-YearYear 115.00%10.71%Year 234.0025.51Year 320.4018.22Year 412.2413.02Year 511.309.30Year 67.068.85Year 78.86Year 85.53TABLE 2d MACRS-Mid Quarter Convention: For property placed in service during the fourth quarterDepreciation Rate for Recovery Period5-Year7-YearYear 15.00%3.57%Year 238.0027.55Year 322.8019.68Year 413.6814.06Year 510.9410.04Year 69.588.73Year 78.73Year 87.64

Wheeler LLC purchased two assets during the current year (a full 12-month tax year). On November 16 Wheeler placed in service computer equipment (five-year property) with a basis of $20,500 and on April 20 placed in service furniture (seven-year property) with a basis of $14,300. Calculate the maximum depreciation expense (ignoring §179 and bonus depreciation). (Use MACRS Table 2.) (Round final answer to the nearest whole number.) Multiple Choice $2,149 $3,578 $5,436 $6,064 None of the choices are correct.

Wheeler LLC purchased two assets during the current year (a full 12-month tax year). On November 16 Wheeler placed in service computer equipment (five-year property) with a basis of $20,500 and on April 20 placed in service furniture (seven-year property) with a basis of $14,300. Calculate the maximum depreciation expense (ignoring §179 and bonus depreciation). (Use MACRS Table 2.) (Round final answer to the nearest whole number.) Multiple Choice $2,149 $3,578 $5,436 $6,064 None of the choices are correct.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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