Question: ABC Corp bought a production machine on January 1, 2016, for $31,250. The company did not elect Section 179 expensing and elected out of claiming

ABC Corp bought a production machine on January 1, 2016, for $31,250. The company did not elect Section 179 expensing and elected out of claiming bonus depreciation in 2016, and is depreciating the machine using the MACRS accelerated depreciation tables for the 5-year property. What is the 2018 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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