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