Northern Enterprises just purchased $1,900 of fixed assets that are classified as 3-year MACRS property.The MACRS rates are 33.33 percent,44.44 percent,14.82 percent,and 7.41 percent for Years 1 to 4,respectively.What is the amount of the depreciation expense for Year 2? Ignore bonus depreciation.

Question

Quizplus · Accepted Answer

The depreciation expense for Year 2 is calculated by multiplying the cost of the asset ($1,900) by the MACRS rate for Year 2 (44.44%). Thus, $1,900 * 44.44% = $844.36.

Northern Enterprises Just Purchased $1,900 of Fixed Assets That Are