Morris Motors just purchased some MACRS 5-year property at a cost of $216,000.Which one of the following will correctly give you the book value of this equipment at the end of year 2?
A)$216,000/(1 + 0.20 + 0.32)
B)$216,000 × (1 - 0.20 - 0.32)
C)$216,000 × (0.20 + 0.32)
D)[$216,000 × (1 - 0.20)] × (1 - 0.32)
E)$216,000/[(1 + 0.20)(1 + 0.32)]

Question

Morris Motors just purchased some MACRS 5-year property at a cost of $216,000.Which one of the following will correctly give you the book value of this equipment at the end of year 2? 
A)$216,000/(1 + 0.20 + 0.32) 
B)$216,000 × (1 - 0.20 - 0.32) 
C)$216,000 × (0.20 + 0.32) 
D)[$216,000 × (1 - 0.20)] × (1 - 0.32) 
E)$216,000/[(1 + 0.20)(1 + 0.32)]

Quizplus · Accepted Answer

The Answer of Morris Motors just purchased some MACRS 5-year property at a cost of $216,000.Which one of the following will correctly give you the book value of this equipment at the end of year 2? 
A)$216,000/(1 + 0.20 + 0.32) 
B)$216,000 × (1 - 0.20 - 0.32) 
C)$216,000 × (0.20 + 0.32) 
D)[$216,000 × (1 - 0.20)] × (1 - 0.32) 
E)$216,000/[(1 + 0.20)(1 + 0.32)]

Morris Motors Just Purchased Some MACRS 5-Year Property at a Cost