Main Answer:
4) Cannot be determined
Step-by-step explanation:
The term "holding period" typically refers to the duration for which an asset or investment is held by an individual or entity.
In this context, the question mentions "the holding period of Laurel for the equipment," but it doesn't provide any specific information about when Laurel acquired or disposed of the equipment.
Without details about the start and end dates of Laurel's ownership or usage of the equipment, it is impossible to determine the holding period.
The options presented (7 months, 1 year, 3 months) are arbitrary time frames and cannot be conclusively associated with Laurel's holding period without additional information.
Therefore, the correct answer is that the holding period of Laurel for the equipment cannot be determined based on the given information.