During 2018, Duncan Purchases and Places in Service Office Equipment

question 40

Multiple Choice

During 2018, Duncan 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 his minimum 2018 depreciation deduction?

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

---

Definitions:

Continuity Theory

A psychological theory suggesting that individuals tend to maintain consistent patterns of behavior, values, and identity over time, particularly through achievements and perspectives.

Social Circles

The groups of people with whom an individual regularly interacts and shares a sense of community.

Socioemotional Selectivity Theory

Theory, proposed by Carstensen, that people select social contacts on the basis of the changing relative importance of social interaction as a source of information, as an aid in developing and maintaining a self-concept, and as a source of emotional well-being.

Psychological Function

A generic term for processes related to the mind, such as thinking, perceiving, feeling, and behaving, that enable individuals to navigate and interpret the world.