Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Suppose that a project has a depreciable investment of $600,000 and falls under the following MACRS year 5 class depreciation schedule: year 1: 20%; year 2: 32%; year 3: 19

Suppose that a project has a depreciable investment of $600,000 and falls under the following MACRS year 5 class depreciation schedule: year 1: 20%; year 2: 32%; year 3: 19

Finance

Suppose that a project has a depreciable investment of $600,000 and falls under the following MACRS year 5 class depreciation schedule: year 1: 20%; year 2: 32%; year 3: 19.2%; year 4: 11.5%; year 5: 11.5%; and year 6: 5.8%. Calculate depreciation for year 2. 
A. $120,000 B. $192,000 C. $96,000 D. $115,200 

 

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Answer

B .

Explanation

Computation of Depreciation for year 2:

Depreciation for Year 2 = Depreciable Investment*MACRS Rate for Year 2

= $600,000*32%

Depreciation for Year 2 = $192,000