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 $22,000 and on April 20 placed in service furniture (seven-year property) with a basis of $15,200. Calculate the maximum depreciation expense (ignoring §179 and bonus depreciation). (Use MACRS Table 2 (opens in a new tab).) Note: Round final answer to the nearest whole number.

Barney and Betty got divorced in 2018. In the divorce decree, Betty agreed to pay Barney $52,600 per year for twenty years (or until Barney’s death or remarriage) and $13,000 per year until their daughter, Pebbles, turns 19 years old. What amount (if any) is included in Barney’s gross income in 2026?

Baker is single and earned $225,800 of salary as an employee in 2026. How much should his employer have withheld from his paycheck for FICA taxes? Note: Round your answer to the nearest whole dollar amount.

Alain Mire files a single tax return and has adjusted gross income of $314,000. His net investment income is $43,000. What is the additional tax that Alain will pay on his net investment income for the year?

Alpha sold machinery that it used in its business to Beta, a related entity, for $39,600. Beta used the machinery in its business. Alpha bought the machinery a few years ago for $50,400 and has claimed $29,600 of depreciation expense. What is the amount and character of Alpha’s gain?

Jasmine started a new business in the current year. She incurred $29,000 of start-up costs. How much of the start-up costs can be immediately deducted (excluding amounts amortized over 180 months) for the year?

Which device is used to store your files long-term and retains data when the computer is turned off?

Which component is most responsible for executing instructions in a computer?

What does RAM stand for, and what is its main job?

A company is selecting storage for laptops that will be carried frequently by field employees. Which reason most strongly favors an SSD over a traditional hard disk?