ABC Corp Bought a Production Machine on January 1, 2012

Multiple Choice

ABC Corp bought a production machine on January 1, 2012 for $31,250. The company elected out of Section 179 expensing and elected out of claiming bonus depreciation in 2012, and is depreciating the machine using the MACRS accelerated depreciation tables for 5-year property. What is the 2014 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