ABC Corp Bought a Production Machine on January 1,2015 for $31,250.The

question 91

Multiple Choice

ABC Corp bought a production machine on January 1,2015 for $31,250.The company did not elect Section 179 expensing and elected out of claiming bonus depreciation in 2015,and is depreciating the machine using the MACRS accelerated depreciation tables for 5-year property.What is the 2017 depreciation (year 3) deduction for the machine?

• A)$6,000
• B)$6,250
• C)$10,000
• D)$12,500
• E)None of the above is correct

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Definitions:

Long-Run Equilibrium

A state in which all factors of production and outputs in an economy have fully adjusted and all changes are reflected in prices.

Marginal Revenue Curve

Illustrates how marginal revenue changes as the quantity of output sold changes.

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogeneous product, perfect information, and no barriers to entry or exit.

Monopolistic Firm

A company that possesses significant market power, allowing it to set higher prices compared to a perfectly competitive market.