Find the first year's depreciation using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar.
-Cost: $8,760
Period: 5-year

Question

Find the first year's depreciation using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar. 
-Cost: $8,760
Period: 5-year

Quizplus · Accepted Answer

The MACRS depreciation rates table for 5-year property is as follows:

Year 1: 20.00%
Year 2: 32.00%
Year 3: 19.20%
Year 4: 11.52%
Year 5: 11.52%
Year 6: 5.76%

To find the first year's depreciation using the MACRS method, we multiply the cost of the property by the first year's depreciation rate of 20.00%:

$8,760 x 0.20 = $1,752

Rounded to the nearest dollar, the first year's depreciation is $1,752. Therefore, the best choice is B.

Find the First Year's Depreciation Using the MACRS Method of Depreciation