Pete's Garage just purchased some equipment at a cost of $650,000. What is the proper methodology for computing the depreciation expense for Year 3 if the equipment is classified as 5-year property for MACRS? The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. Ignore bonus depreciation. Group of answer choices $650,000(1 − .20)(1 − .32) $650,000(.192) $650,000(1 − .20)(1 − .32)(.192) $650,000(1 − .20)(1 − .32)(1 − .192) $650,000(1 − .192)
Pete's Garage just purchased some equipment at a cost of $650,000. What is the proper methodology for computing the depreciation expense for Year 3 if the equipment is classified as 5-year property for MACRS? The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. Ignore bonus depreciation. Group of answer choices $650,000(1 − .20)(1 − .32) $650,000(.192) $650,000(1 − .20)(1 − .32)(.192) $650,000(1 − .20)(1 − .32)(1 − .192) $650,000(1 − .192)
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...
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Pete's Garage just purchased some equipment at a cost of $650,000. What is the proper methodology for computing the depreciation expense for Year 3 if the equipment is classified as 5-year property for MACRS? The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. Ignore bonus depreciation.
Group of answer choices
$650,000(1 − .20)(1 − .32)
$650,000(.192)
$650,000(1 − .20)(1 − .32)(.192)
$650,000(1 − .20)(1 − .32)(1 − .192)
$650,000(1 − .192)
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