During 2016,Williams Company purchases and places in service office equipment with a cost of $40,000.The equipment is 7-year MACRS property.What is its 2016 depreciation deduction for purposes of the alternative minimum tax?
A)$2,000
B)$2,857
C)$3,000
D)$4,000
E)$5,714

Question

Quizplus · Accepted Answer

For the alternative minimum tax, the depreciation deduction for 7-year MACRS property in the first year is calculated using the 150% declining balance method, which results in a deduction of $2,857.

During 2016,Williams Company Purchases and Places in Service Office Equipment