During 2013,Williams Company Purchases and Places in Service Office Equipment

question 66

Multiple Choice

During 2013,Williams Company purchases and places in service office equipment with a cost of $40,000.The equipment is 7-year MACRS property.What is its 2013 depreciation deduction for purposes of the alternative minimum tax?

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

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Definitions:

Heuristics

Simplified strategies or mental shortcuts used to make decisions or solve problems quickly.

Fixations

Persistent focusing of psychological energy on a particular stage of psychosexual development, according to Freudian theory.

Simple Thinking

The process of reasoning or problem-solving in a straightforward, uncomplicated manner, often involving direct observation and practicality.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method, or decision.