An asset fitting into the 7-year MACRS category was purchased 2 years ago for $72,000. The book value of this asset is now

Name: An asset fitting into the 7-year MACRS category was purchased 2 years ago for $72,000. The book value of this asset is now
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Question

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The MACRS depreciation rates for a 7-year property are 14.29% for the first year and 24.49% for the second year. The book value after 2 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