During 2013,Duncan Company Purchases and Places in Service Office Equipment

question 18

Multiple Choice

During 2013,Duncan Company purchases and places in service office equipment with a cost of $40,000.The equipment is 7-year MACRS property with an ADS recovery period of 10 years.Duncan desires to avoid the AMT.What is its minimum 2013 depreciation deduction?

• A)$ 2,000
• B)$ 2,857
• C)$ 3,000
• D)$ 4,000
• E)$ 5,714

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Definitions:

Occupation

A person's regular work or profession; job or principal activity.

Psychological Type

Refers to different categories of personality based on individuals' preferences in their cognition, behavior, and interaction with others.

Adolescent Stage

A developmental phase characterized by the transition from childhood to adulthood, involving significant physical, psychological, and social changes.

Generativity

A concern for establishing and guiding the next generation, often developed during adulthood, as described in Erikson’s stages of psychosocial development.