Exhibit 11-05 Wilson is preparing his tax returns using the MACRS convention. The following information relates to the purchase of an asset on January 1, 2013.
-Refer to Exhibit 11-05, what amount of depreciation would have been recorded in Wilson's books for year 3?

Question

Exhibit 11-05 Wilson is preparing his tax returns using the MACRS convention. The following information relates to the purchase of an asset on January 1, 2013.   
-Refer to Exhibit 11-05, what amount of depreciation would have been recorded in Wilson's books for year 3?

Quizplus · Accepted Answer

The correct answer is B. The depreciation expense for year 3 is $12,857. This is calculated by multiplying the depreciable base of $180,000 by the depreciation rate of 7.14%.

Exhibit 11-05 Wilson Is Preparing His Tax Returns Using the MACRS