On March 23,2013,Saturn Investments Corporation Purchases a $5,000 Computer (5-Year

question 15

Multiple Choice

On March 23,2013,Saturn Investments Corporation purchases a $5,000 computer (5-year property) for business-use.On November 27,2013,it pays $4,000 for new office furniture (7-year property) .It does not wish to use the Section 179 election to expense and elects out of bonus depreciation.How much depreciation may Saturn deduct on the computer for 2013?

• A)$1,000
• B)$1,750
• C)$2,625
• D)$3,325
• E)$3,500

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Definitions:

Job-Order Costing

An accounting method that tracks production costs to specific jobs or orders, allowing for detailed cost analysis of each job.

Predetermined Overhead Rate

A rate calculated by dividing estimated overhead costs by an allocation base, used to allocate overhead costs to products or services.

Direct Labor-Hours

A measure of the total hours worked by employees directly involved in manufacturing a product or providing a service.

Manufacturing Overhead

Manufacturing overhead encompasses all production costs other than direct materials and direct labor, including expenses like factory equipment maintenance and utilities.