Question
Q.1 A machine purchased for $100,000 is classified as 7-years MACRS property. If it was sold in year 6 for 10% of the investment, what
Q.1 | A machine purchased for $100,000 is classified as 7-years MACRS property. If it was sold in year 6 for 10% of the investment, what is the gains for this asset? | |
(a) | $1,057 |
|
(b) | - $3,390 |
|
(c) | $8,925 |
|
(d) | $3,390 |
|
Q2.An asset was bought for $70,000 with a service life of 6 years and has a salvage value of $16,000 at the end of its service life. If the BV of an asset in year 3 is 20,741 and double declining method is used, what amount can be depreciated in year 4. | |
$6,251 |
|
$6,914 |
|
$4,741 |
|
$5,824 |
|
Q3.Your accounting records indicate that an asset in use has a book value of $8,640, The asset costed $50,000 when it was purchased, and it has been depreciated as 5-year MACRS property. Based on the information available, determine how many years the asset has been in service. | |
4 years |
|
5 years |
|
6 years |
|
3 years |
|
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