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

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Definitions:

Broker Fee

A charge or commission a broker commands for their service in facilitating transactions, such as buying or selling securities.

Discount Broker

A broker who trades stocks, but does not give investment advice.

Net Proceeds

The total amount received from a sale or transaction after deducting all related expenses and costs.

1% Commission

A fee or charge for services, typically in sales or financial transactions, that is equal to 1% of the transaction's total value.