40, A firm paid $10,000 for tables, desks, and chairs used in its office. Determine the depreciation charge permissible in the fourth year. Use MACRS GDS system to solve for this problem.

To solve for this problem, first you need to determine what class the tables, desks, and chairs belong to. According to Table 7-2 MACRS Class Lives and Recovery Periods, the asset class for these items is

Group of answer choices

00.12 - Information systems, including computers

15.0 - Construction

00.26 - Tractor units for use over the road

00.11 - Office furniture and equipment Based on question 40, according to the asset class you determined, how many years is the recovery period under the GDS system?

Group of answer choices

10 years

7 years

3 years

5 years Based on question 40, what is the GDS recovery rate rk for the items at the end of the fourth year?

Group of answer choices

0.1249

0.1152

0.0770

0.0741 Based on question 40, what is the depreciation charge permissible in the fourth year?

Group of answer choices

$1,249

$741

$1,152

$770 Please type out answers. DO NOT WRITE ON PAPER AND NO AI ANSWERS.