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Citrus2011 [14]
3 years ago
14

Wheeler LLC purchased two assets during the current year (a full 12-month tax year). On November 16 Wheeler placed in service co

mputer equipment (five-year property) with a basis of $15,500 and on April 20 placed in service furniture (seven-year property) with a basis of $11,300.
Required:
Calculate the maximum depreciation expense (ignoring §179 and bonus depreciation).
Business
1 answer:
Leni [432]3 years ago
5 0

Answer:

The maximum depreciation expense is $2,792

Explanation:

In order to calculate the maximum depreciation expense we would have to calculate the depreciation of service computer equipment and the service furniture as follows:

depreciation of service computer equipment=$15,500*5%

depreciation of service computer equipment=$775

depreciation of service furniture=$11,300*17.85%

depreciation of service furniture=$2,017

Therefore, maximum depreciation expense=depreciation of service computer equipment+depreciation of service furniture

maximum depreciation expense=$775+$2,017

maximum depreciation expense=$2,792

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<h3>What is a mission statement?</h3>

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