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A Firm Is Considering the Purchase of a New Machine

Question 76

Multiple Choice

A firm is considering the purchase of a new machine for $325,000. The firm is unsure if it should use the 3-Year MACRS schedule or straight-line depreciation over three years. What is the difference in the book value after three years if the firm uses MACRS instead of straight-line depreciation? A) $0 B) $24,083 C) $48,166 D) $300,918 A firm is considering the purchase of a new machine for $325,000. The firm is unsure if it should use the 3-Year MACRS schedule or straight-line depreciation over three years. What is the difference in the book value after three years if the firm uses MACRS instead of straight-line depreciation?


A) $0
B) $24,083
C) $48,166
D) $300,918

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