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 $32,000. Calculate the maximum depreciation expense for the current year (ignoring §179 and bonus depreciation) .

A) $4,400
B) $5,258
C) $5,400
D) $6,400
E) None of the choices are correct.