ABC Inc. has net income of $650,000 before depreciation and has purchased one used piece of equipment during the year for $1,200,000. Which of the following depreciation strategies will reduce the net income the greatest? Question 16 options: Use Section 179. Use MACRS Use Section 179 and MACRS Use bonus depreciation

Assume the perpetual inventory method is used. 1) the company purchased $12,500 of merchandise on account under terms 2/10, n/30. 2) the company returned $1,200 of merchandise to the supplier before payment was made. 3) the liability was paid within the discount period. 4) all of the merchandise purchased was sold for $18,800 cash. what effect will the return of merchandise to the supplier have on the accounting equation?