An asset fitting into the 7-year MACRS category was purchased two years ago for $72,000. The book value of this asset is now ________.

Question

Quizplus · Accepted Answer

The 7-year MACRS category has specific depreciation rates for each year. For the first two years, the rates are 14.29% and 24.49%. The book value after two years is calculated as: $72,000 - ($72,000 * 0.1429) - ($72,000 * 0.2449) = $44,064.

An Asset Fitting into the 7-Year MACRS Category Was Purchased