Peterborough Trucking just purchased some fixed assets that are classified as 3-year property for MACRS.The assets cost $10,600.What is the amount of the depreciation expense in year 3?

Question

Quizplus · Accepted Answer

To calculate the depreciation expense in year 3, we need to know the MACRS depreciation schedule for 3-year property. According to this schedule, the depreciation amounts are as follows:
Year 1: 33.33% x $10,600 = $3,533.33
Year 2: 44.45% x $10,600 = $4,711.70
Year 3: 14.81% x $10,600 = $1,569.86
Year 4: 7.41% x $10,600 = $786.54

Therefore, the depreciation expense in year 3 is $1,569.86. The correct answer is C.

Peterborough Trucking Just Purchased Some Fixed Assets That Are Classified