A computer system purchased by Jones Company cost $45,900. Using the MACRS method, calculate the accumulated depreciation at the end of year 3. (Round all dollar amounts to the nearest cent)
A) $30,339.20
B) $32,680.80
C) $33,529.81
D) $36,700.00

Question

Quizplus · Accepted Answer

The MACRS method uses specific depreciation rates for each year. For a 5-year property, the rates are approximately 20%, 32%, and 19.2% for the first three years. Applying these rates to the cost of $45,900 gives accumulated depreciation of $32,680.80 at the end of year 3.

A Computer System Purchased by Jones Company Cost $45,900