Question: Dragon Slayer, a high tech start up that intends to produce a streaming series that will rival Game of Thrones, buys all of its 200
Dragon Slayer, a high tech start up that intends to produce a streaming series that will rival Game of Thrones, buys all of its 200 techies a state of the art laptop especially designed for graphics and costing $4,000 each, for a total cost of $800,000. Dragon Slayer has an AFS, and deducts the entire $800,000 on its AFS. Question 4Answer a. Dragon Slayer may deduct the entire $800,000 currently, per the de minimis exception, because it deducts that amount on its AFS. b. Dragon Slayer may not deduct any of the $800,000 currently because the $4,000 per item exceeds the amount allowed per the de minimis exception. c. Dragon Slayer may not deduct the entire $800,000 currently because it does not deduct the amount on its AFS. d. Dragon Slayer may not deduct the entire $800,000 currently but may deduct $500,000 currently per the de minimis
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