On January 3,2011,John Acquired and Placed into Service Business Tools

question 4

Multiple Choice

On January 3,2011,John acquired and placed into service business tools costing $10,000.The tools have a 3-year class life.No other assets were purchased during that year.The depreciation in 2014 for those tools is (Sec.179 and bonus depreciation were not applied)

• A)$0.
• B)$741.
• C)$1,920.
• D)$3,333.

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Definitions:

Economy

The system by which goods and services are produced, distributed, and consumed within a society or area.

Depression of the 1930s

A severe worldwide economic downturn that lasted throughout the 1930s, marked by significant declines in industrial production, widespread unemployment, and deflation.

Recession

A temporary stage of economic depletion, highlighted by a downturn in trade and industrial action, normally identified by a GDP reduction in two back-to-back quarters.

Stagflation

A situation in the economy where inflation and unemployment rates are high simultaneously, leading to slow economic growth.