On October 2,2017,Dave Acquired and Placed into Service 5-Year Business

question 95

Multiple Choice

On October 2,2017,Dave acquired and placed into service 5-year business equipment costing $70,000.No other acquisitions were made during the year.Dave does not use Sec.179 expensing,and the property does not qualify for bonus depreciation.The depreciation for this year,using the most accelerated method possible,is

• A)$0.
• B)$3,500.
• C)$7,000.
• D)$14,000.

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Definitions:

Cost of Goods Sold

The expenses directly linked to the manufacturing of goods a company sells.

Specific Invoice

An itemized bill showing quantities, descriptions, prices, and terms of products and services provided by a seller to a buyer.

Ending Inventory

The total value of all unsold goods remaining at the end of an accounting period.

Recent Invoices

The latest billing statements or documents issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices.