Under MACRS, an asset which originally cost $10,000 is being depreciated using a 5-year normal recovery period. What is the depreciation expense in year 3?

Name: Under MACRS, an asset which originally cost $10,000 is being depreciated using a 5-year normal recovery period. What is the depreciation expense in year 3?
Brand: Quizplus
Rating: 4.8 (45 reviews)

Question

Quizplus · Accepted Answer

Under MACRS for a 5-year property, the depreciation rate for year 3 is 19.20%. Therefore, the depreciation expense in year 3 is $10,000 * 19.20% = $1,920, which is closest to $1,900.

Under MACRS, an Asset Which Originally Cost $10,000 Is Being