On August 3, 2018, Yang Purchases Office Furniture (7-Year Property)

Multiple Choice

On August 3, 2018, Yang purchases office furniture (7-year property) costing $21,000 for use in her business. She does not wish to use the Section 179 election, elects not to use bonus depreciation and makes the election to use the straight-line method over the MACRS recovery period. What is Yang's 2018 cost recovery deduction?

A) $ 500
B) $ 1,500
C) $ 3,000
D) $20,000
E) $21,000