Beth's business purchased only one asset during the current year (a full 12-month tax year). On December 1 Beth placed in service machinery (seven-year property) with a basis of $50,000. Calculate the maximum depreciation expense (ignoring §179 and bonus depreciation). (Use MACRS Table 2.)
A. $10,000.
B. $2,500.
C. $1,785.
D. $7,145.
E. None of the choices are correct.
Answer: C
You might also like to view...
Under a modified wage plan, an employee working an eight-hour day earns $.50 for each finished unit and is guaranteed $20 per hour as a minimum wage. At what level should the daily quota be set?
a. 160 units b. 320 units c. 400 units d. 640 units
Identify three forms of competitive advantage a product could offer
What will be an ideal response?
A(n) ______ maps how a product’s parts go together and the order in which they are assembled.
A. assembly chart B. assembly drawing C. route sheet D. process map
The depreciation method in which a plant asset's depreciation expense for a period is determined by applying a constant depreciation rate to the asset's beginning-of-period book value is called:
A. Book value depreciation. B. Modified accelerated cost recovery system (MACRS) depreciation. C. Units-of-production depreciation. D. Straight-line depreciation. E. Declining-balance depreciation.