Question

1. Which of the following properties is not in the 5-year cost recovery class under MACRS?

a. office furniture

b. light trucks

c. computers

d. automobiles

e. all of the above belong in the 5-year cost recovery class

2.The MACRS basis of 5-year property acquired on January 13, 20X1 is $10,000. The property is sold on July 31, 20x3. If the half-year convention applies to personal property acquired in 20X1 and the regular (accelerated) MACRS method is used, depreciation expense for 20X3 is:

a. $2,000

b. $1,920

c. $1,600

d. $960

e. $800

Answer 1

Question 1:-

The correct answer for the question is Option A - Office furniture. Office furniture is a MACRS 7 year property and hence is the exception from all the options given which are MACRS 5 year properties.

Option B, Option C, Option D and Option E are incorrect per the above explanation as all these assets are MACRS 5 years properties.

Kindly note that i have answered the first question per the HOMEWORKLIB RULESs. Request you to post the remaining question separately so that we can answer them as well. All the best and please let me know if you have any questions via the comments section .