ABC Corp Bought a Production Machine on January 1, 2014

question 25

Multiple Choice

ABC Corp bought a production machine on January 1, 2014 for $31,250. The company elected out of Section 179 expensing and elected out of claiming bonus depreciation in 2014, and is depreciating the machine using the MACRS accelerated depreciation tables for 5-year property. What is the 2016 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

---

Definitions:

Individualism

A theory that prioritizes individual freedom over the control of groups or the government.

Attributes

Characteristics or qualities that describe an entity, individual, or group.

Team Player

An individual who works well within a group, often putting the team’s goals ahead of personal gains.

Independently

Acting or making decisions without input or influence from others.