During 2017,Duncan Company Purchases and Places in Service Office Equipment

question 33

Multiple Choice

During 2017,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 2017 depreciation deduction?

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

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Definitions:

Lobe

Rounded, projecting part, such as the lobe of a lung, the liver, or a gland.

Association Fibers

Nerve fibers that connect different regions within the same hemisphere of the brain, facilitating communication between them.

Cerebral Cortex

This refers to the brain's cerebrum's outer neural tissue, instrumental in controlling memory, cognition, consciousness, thought, language, perception, and attention.

Hemisphere

Half of a spherical or roughly spherical structure, especially one of the halves of the brain.