The price of a railroad engine purchased by the Kenneth family for their business was $2,250. Prepare a depreciation schedule using the MACRS (Modified Accelerated Cost Recovery System) method and calculate the accumulated depreciation at the end of year 3. (Round all amounts to the nearest cent)
A) $393.53
B) $432.00
C) $258.12
D) $518.96

Question

Quizplus · Accepted Answer

The correct answer is A.The MACRS depreciation schedule for a 5-year property is as follows:Year	Percentage1	20.00%2	32.00%3	19.20%4	11.52%5	11.52%6	5.76%The accumulated depreciation at the end of year 3 is $393.53.

The Price of a Railroad Engine Purchased by the Kenneth