Question 2 0 out of 10 points An equipment purchased at a cost $80,000 by a...

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Question 2 0 out of 10 points An equipment purchased at a cost $80,000 by a local company is being depreciated using MACRS me

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Answer 1

Answer #1

The depreciation for the first four years under MACRS

= 20%+32%+19.20%+11.52% = 82.72%

Book value = 80000-(82.72% of 80000) = 80000-66176 = 13824

The gain on the sale = 20000-13824 = 6176

34% of the 6176 = 2100

option(D) none of these

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Answer 2

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