Suppose That a Project Has a Depreciable Investment of $600,000

question 46

Multiple Choice

Suppose that a project has a depreciable investment of $600,000 and falls under the following MACRS year 5 class depreciation schedule:
Year 1: 20 percent; year 2: 32 percent; year 3: 19.2 percent; year 4: 11.5 percent; year 5: 11.5 percent; and year 6: 5.8 percent.
Calculate depreciation for year 2.

• A)$120,000
• B)$192,000
• C)$96,000
• D)$115,200

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Definitions:

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Issued But Not Outstanding

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