Mountain View Development Co

question 84

Multiple Choice

Mountain View Development Co.purchases a new high volume paper shredder for use in their document management department for $20,000 on November 7 of 2013.It was the only piece of depreciable property placed in service during 2013.The paper shredder is 7-year MACRS property,the Section 179 election to expense was not exercised,and it elected out of bonus depreciation.What is Mountain View's 2013 depreciation deduction on the paper shredder?

• A)$714
• B)$2,498
• C)$2,812
• D)$2,980

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Definitions:

Savings And Loan Debacle

Refers to a financial crisis in the United States during the 1980s and early 1990s when many savings and loan associations failed due to risky business practices.

Interest Rates

The cost of borrowing money expressed as a percentage of the amount borrowed, or the return on invested savings.

Long Term Loans

Loans that are extended for a longer duration, typically exceeding one year, and used for financing significant investments or expenses.

Monetary Growth

An increase in the amount of money in an economy, which can influence inflation, interest rates, and economic growth.