Mountain View Development Co

question 3

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 2018. It was the only piece of depreciable property placed in service during 2018. The paper shredder is 7-year MACRS property, the Section 179 election to expense was not exercised and bonus depreciation was not elected. What is Mountain View's 2018 depreciation deduction on the paper shredder?

• A)$714
• B)$2,498
• C)$2,812
• D)$2,980

---

Definitions:

Ratios

Quantitative measures that are used to assess the financial health, performance, and condition of a business by comparing two pieces of financial data.

Analytical Measures

Tools or metrics used to evaluate, understand, and improve business performance or financial health.

Sound Judgment

The ability to assess situations or circumstances and draw sensible conclusions, often used in decision-making processes.

Auditor's Report

A formal opinion issued by an accountant or audit firm regarding the accuracy and completeness of an entity's financial statements.