3. A personal property asset has a purchase price of $50,000 and an installation cost of $10,000. Book depreciation method is the sum-of-years-digits method with a 6-year depreciable life and a $3,000 salvage value. Which one of the following values is correct (rounded to the nearest integer)?

(a) D3 = $11,429 (b) B4 = $8,571 (c) B5 = $5,429 (d) D6 = $2,714

4. On January 1st 2009, a company purchased a machine for $14,000, which is a 7-year MACRS property. The company also paid $6,000 for the transportation and installation of the machine. The machine was sold for $7,000 on December 31st 2013. If gains tax rate was 34%, how much gains taxes did the company owe?

(a) $73 (b) $1,318 (c) $559 (d) $863

Above are two multiple choice questions and answers (a) through (d). please tell me which answer is correct