1. ABC Corp bought a production machine on January 1, 2019 for $31,250. The company did not elect Section 179 expensing and elected out of claiming bonus depreciation in 2019, and is depreciating the machine using the MACRS accelerated depreciation tables for 5-year property, half-year convention. What is the 2021 depreciation (Year 3) deduction for the machine?

a.$10,000

b.$6,250

c.$6,000

d.$12,500

e. None of these choices are correct.

2. In 2021, corporations pay a flat 21 percent rate for federal income tax.

True or False? 3.

In 2021, Apricot Corporation had taxable income of $120,000. Included in taxable income was a $10,000 capital gain. The $120,000 of taxable income does not include a $15,000 capital loss carryforward available from the previous year. What is Apricot Corporation's 2021 income tax liability before any tax credits?

a.$22.050

b.$23,100

c.$25,200

d.$21,000

e.None of these choices are correct.