A Project Requires $428,000 of Equipment That Is Classified as Seven-Year

question 90

Multiple Choice

A project requires $428,000 of equipment that is classified as seven-year property.What is the depreciation expense in Year 3 given the following MACRS depreciation allowances, starting with Year 1: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent?

• A)$89,038.42
• B)$48,447.30
• C)$56,038.15
• D)$74,857.20
• E)$104,817.20

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Definitions:

Point Bar

a depositional feature made of alluvium that accumulates on the inside bend of streams and rivers below the slip-off slope.

Cutbank

The steep bank typically found on the outside bend of a river or stream, formed by the erosion process of flowing water.

Sinuosity

A measure of how much a river meanders or curves compared to the straight path down its valley.

Esker

A long, winding ridge of stratified sand and gravel, typically in a serpentine shape, formed by retreating glaciers or ice sheets.