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XY Company is planning to purchase 3 used trucks. Each truck will cost $18,000. The salvage value for each track $4,000. Compute the total depreciation
XY Company is planning to purchase 3 used trucks. Each truck will cost $18,000. The salvage value for each track $4,000. Compute the total depreciation for each truck for the third year, using the modified accelerated cost recovery system (MACRS) method, if the recovery period is 5 years. Percentage by recovery year Recovery year 5 years 1 33% 20% 14% 2. 45 32 25 3 15 19 4 7 12 12 5 12 9 6 5 7 9 3 years 7 years 18 9 8 4 9 10 11 Totals 100% 100% 100% These percentages have been rounded to the nearest whole percent to simplify calculations wl ing realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual u percentages or directly apply double-declining balance depreciation using the half-year conven Select one: O a. 12,780 O b. 3,456 O c. 1,036.80 O d. 2,073.60 O e. 5,760
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