Better Beverages purchased $139,700 of fixed assets that are classified as five-year MACRS property. The MACRS rates are .2, .32, .192, .1152, .1152, and .0576 for Years 1 to 6, respectively. What will the accumulated depreciation be at the end of Year 4 if the tax rate is 21 percent and no bonus depreciation is taken?
A) $76,269.49
B) $16,093.44
C) $24,140.16
D) $48,755.09
E) $115,559.84

Question

Quizplus · Accepted Answer

The accumulated depreciation at the end of Year 4 is calculated by summing the depreciation for each year using the MACRS rates: $139,700 * (.2 + .32 + .192 + .1152) = $115,559.84.

Better Beverages Purchased $139,700 of Fixed Assets That Are Classified