Question
Use the following MACRS depreciation table: MACRS Rates for 3-Year Property (rounded) Year 1 Year 2 Year 3 Year 4 33.33% 44.45% 14.81% 7.41% A
Use the following MACRS depreciation table:
MACRS Rates for 3-Year Property (rounded)
| Year 1 | Year 2 | Year 3 | Year 4 |
| 33.33% | 44.45% | 14.81% | 7.41% |
A firm has a 40% tax rate, what is the depreciation tax shield for Year 3 if a piece of equipment (3-year property) costs $1,000,000 based on the MACRS rates above?
$133,320
$177,800
$59,240
$29,640
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Campaign Finance Reform
Authors: Melissa M. Smith, Glenda C. Williams, Larry Powell, Gary A. Copeland
1st Edition
0739145657, 978-0739145654
