Lax LLC Purchased Only One Asset During the Current Year

Multiple Choice

Lax LLC purchased only one asset during the current year (a full 12-month tax year) . On August 26 Lax placed in service computer equipment (five-year property) with a basis of $41,000. Calculate the maximum depreciation expense for the current year (ignoring §179 and bonus depreciation) . (Use MACRS Table 1.)

A) $6,200
B) $7,058
C) $7,200
D) $8,200
E) None of the choices are correct.