Wu Copy Shop Purchases a New Copy Machine in July

question 105

Multiple Choice

Wu Copy Shop purchases a new copy machine in July 2013 for $30,000.No other depreciable assets are placed in service in 2013.Since Wu Copy Shop expects to be in a much higher tax bracket in future years,it desires to minimize its current cost recovery amount to the fullest extent possible.What is the amount of Wu Copy Shop's ADS depreciation for 2013?

• A)$1,500
• B)$3,000
• C)$4,500
• D)$5,400
• E)$6,000

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Definitions:

Safety Inventory

Extra inventory held to protect against unpredictability in demand or supply, ensuring product availability.

Supply Uncertainty

The unpredictability associated with the availability of products or materials necessary for production.

Product Availability

The extent to which a good or service is available for purchase at any given time.

Product Differentiation

Strategies businesses use to make their products stand out from competitors' by highlighting unique features or benefits.