A Farm Tractor Costing $80,000 Is Depreciated Using the MACRS

question 73

Multiple Choice

A farm tractor costing $80,000 is depreciated using the MACRS method. The tractor qualifies as a 3-year property, has a scrap value of $20,000, and is depreciated at the following rates: Year 1, 33.33%; Year 2, 44.45%; Year 3, 14.81%; and Year 4, 7.41%. The amount of depreciation to be entered for the second year would be

• A) $20,000.
• B) $26,670.
• C) $35,560.
• D) $44,450.

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