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

In this question, we will calculate the maximum depreciation expense by using MACRS Table.

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.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 7P: Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset,...

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