Keyser Petroleum just purchased some equipment at a cost of $67,000. What is the proper methodology for computing

Keyser Petroleum just purchased some equipment at a cost of $67,000. What is the proper methodology for computing the depreciation expense for year 2 if the equipment is classified as 5-year property for MACRS?        A.  $67,000 × (1 - 0.20) × 0.32 B.  $67,000/(1 - 0.20 - 0.32) C.  $67,000 × (1 + 0.32) D.  $67,000 × (1 - 0.32) E.  $67,000 × 0.32 Refer to section 10.4

30.

The current book value of a fixed asset that was purchased two years ago is used in the computation of which one of the following?    A.  depreciation tax shield B.  tax due on the salvage value of that asset C.  current year's operating cash flow D.  change in net working capital E.  MACRS depreciation for the current year Refer to section 10.4

31.

The net book value of equipment will:    A.  remain constant over the life of the equipment. B.  vary in response to changes in the market value. C.  decrease at a constant rate when MACRS depreciation is used. D.  increase over the taxable life of an asset. E.  decrease slower under straight-line depreciation than under MACRS. Refer to section 10.4