You just purchased some equipment that is classified as 5-year property for MACRS.

Bernie's Beverages purchased some fixed assets classified as 5-year property for MACRS. The assets cost $94,000. What will the accumulated depreciation be at the end of year three?        A.  $13,520 B.  $25,056 C.  $38,241 D.  $48,759 E.  $66,928 Depreciation = $94,000 × (0.20 + 0.32 + 0.192) = $66,928

64.

You just purchased some equipment that is classified as 5-year property for MACRS. The equipment cost $147,000. What will the book value of this equipment be at the end of 4 years should you decide to resell the equipment at that point in time?        A.  $8,467.20 B.  $25,401.60 C.  $42,336.00 D.  $121,598.40 E.  $138,532.80 Book Value4 = $147,000 × (0.1152 + 0.0576) = $25,401.60

65.

Peterborough Trucking just purchased some fixed assets that are classified as 3-year property for MACRS. The assets cost $10,600. What is the amount of the depreciation expense in year 3?        A.  $537.52 B.  $1,347.17 C.  $1,569.86 D.  $1,929.11 E.  $2,177.56 Depreciation3 = $10,600 × 0.1481 = $1,569.86