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Good Motors just purchased some MACRS 5-year property at a cost of $250,000. The MACRS rates are .2, .32, and .192 for years 1 to
Good Motors just purchased some MACRS 5-year property at a cost of $250,000. The MACRS rates are .2, .32, and .192 for years 1 to 3, respectively. Which one of the following will correctly give you the book value of this equipment at the end of year 2? |
Select one:
a.
$250,000 / (1 + .2 + .32) |
b.
$250,000 (.20 + .32) |
c.
[$250,000 (1 - .20)] (1 - .32) |
d.
$250,000 (1 - .2 - .32) |
e.
$250,000 / [(1 + .20)(1 + .32)] |
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