Will Do,Inc.just purchased some equipment at a cost of $650,000.What is the proper methodology for computing the depreciation expense for year 3 if the equipment is classified as 5-year property for MACRS?
MACRS 5-year property
Year Rate
1 20.00%
2 32.00%
3 19.20%
4 11.52%
5 11.52%
6 5.76%
A) $650,000 * .192
B) $650,000 * (1-.20) * (1-.32)
C) $650,000 * (1+.20) * (1+.32) * (1+.192)
D) $650,000 * (1-.192)
E) $650,000 * (1-.20) * (1-.32) *(1-.192)
Correct Answer:
Verified
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