MACRS
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

Question

MACRS
 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

Quizplus · Accepted Answer

A) At the end of three years, both will be completely depreciated, thus 11ea84dc_f54b_5e3a_9a63_75f7c0300990_TB1316_11_TB1316_11

MACRS a Firm Is Considering the Purchase of a New