American_Bankers_Association
CTFA · Question #217
The Counting House, Inc., purchased 5-year property class equipment for $60,000. It uses the MACRS method of depreciation. What is tax depreciation for the second year of the asset's life?
The correct answer is B. $19,200. See the full explanation below for the reasoning.
Taxation
Question
The Counting House, Inc., purchased 5-year property class equipment for $60,000. It uses the MACRS method of depreciation. What is tax depreciation for the second year of the asset's life?
Options
- A$12,000
- B$19,200
- C$20,000
- D$24,000
How the community answered
(32 responses)- A16% (5)
- B75% (24)
- C3% (1)
- D6% (2)
Topics
#MACRS depreciation#5-year property class#tax depreciation calculation#accelerated depreciation
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