Question 21

2.5 Points

Suvi, Inc. purchased two assets during the current year (a full 12-month tax year). Suvi placed in service computer equipment (5-year property) on August 10 with a basis of $20,000 and machinery (7-year property) on November 18 with a basis of $10,000. Calculate the maximum depreciation expense (ignoring 179 and bonus depreciation). (Use MACRS Table 1) (Round final answer to the nearest whole number.)

A. $5,429.

B. $6,000.

C. $3,357.

D. $857.

E. None of the choices are correct.

Question 24

2.5 Point

Which of the following is a true statement about travel that has both business and personal aspects?

A. Meals are not deductible for this type of travel.

B. Only half of the cost of meals and transportation is deductible.

C. The cost of lodging and incidental expenditures is limited to those incurred during the business portion of the travel.

D. Transportation costs are always fully deductible.

E. None of the choices are correct.