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

question 18

Multiple Choice

During 2013,Duncan Company purchases and places in service office equipment with a cost of $40,000.The equipment is 7-year MACRS property with an ADS recovery period of 10 years.Duncan desires to avoid the AMT.What is its minimum 2013 depreciation deduction?

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