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:

Efficient Outcome

An economic situation in which every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Peace and Quiet

signifies a state of tranquility and serenity, often desired by individuals seeking relief from stress or chaos.

Home Business

A business operated from the owner's residence, often characterized by lower overhead costs and flexible working hours.

Coase Theorem

A principle that asserts under conditions of no transaction costs and well-defined property rights, parties will negotiate to correct externalities and allocate resources efficiently.