ABC Corp Bought a Production Machine on January 1, 2017

question 109

Multiple Choice

ABC Corp bought a production machine on January 1, 2017 for $31,250. The company did not elect Section 179 expensing and elected out of claiming bonus depreciation in 2017, and is depreciating the machine using the MACRS accelerated depreciation tables for 5-year property. What is the 2019 depreciation (Year 3) deduction for the machine?

• A)$6,000
• B)$6,250
• C)$10,000
• D)$12,500
• E)None of the above is correct

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Definitions:

Drive Theories

Psychological theories that posit behavior is motivated by desires to satisfy biological needs or drives.

Incentive Theories

Theories that suggest that behavior is motivated by a desire for reinforcement or incentives.

Sociobiological

Relating to the study of the biological basis of social behavior, suggesting that such behavior is influenced by evolutionary factors.

Sociological

Sociological pertains to the study of society, its institutions, relationships, and processes, focusing on understanding social behaviors, structures, and functions.