Use the Following Data ? Using the Sum-Of-The-Year's-Digits Method, the Amount of Depreciation for

question 8

Multiple Choice

Use the following data: $$\begin{array} { l r } \text { Asset cost } & \$ 80,000 \\\text { Expected life } & 3 \text { years } \\\text { Estimated salvage value } & \$ 10,000\end{array}$$ ? Using the sum-of-the-year's-digits method, the amount of depreciation for the first year would be

• A) $26,666.
• B) $35,000.
• C) $20,000.
• D) $40,000.

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Definitions:

Progressivity

Refers to the degree to which a tax system taxes higher incomes at higher rates.

OECD Countries

Member countries of the Organisation for Economic Co-operation and Development, which are generally regarded as developed countries with high-income economies.

U.S. Tax System

A system by which the government of the United States funds its operations through the imposition of various types of taxes on individuals and businesses, including income, sales, and property taxes.

Expenditures

The act of spending funds or consuming resources, typically in the context of government or household budgets.