Weston Purchases Equipment Classified as 7-Year Property on January 5,2013,at

question 82

Multiple Choice

Weston purchases equipment classified as 7-year property on January 5,2013,at a cost of $80,000.Section 179 was not elected,and he elected out of bonus depreciation.He sells the equipment on February 12,2015.What is Weston's 2015 depreciation deduction?

• A)$ - 0 -
• B)$ 3,498
• C)$ 6,996
• D)$ 9,794
• E)$13,992

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Definitions:

Minimum Wage

The lowest legal amount that can be paid to workers by employers, typically set by government legislation.

Fast Food

Food that is prepared and served quickly, often with an emphasis on convenience and typically from a business specializing in such meals.

Division of Labour

The division of labour refers to the allocation of different parts of a manufacturing process or task to different individuals in order to improve efficiency.

Deskilling

Refers to the process by which work tasks are broken into simple routines requiring little training to perform. Deskilling is usually accompanied by the use of machinery to replace labour wherever possible and increased management control over workers.