Overland Purchased $387,950 of Fixed Assets That Are Classified as Three-Year

question 87

Multiple Choice

Overland purchased $387,950 of fixed assets that are classified as three-year property for MACRS. The MACRS rates are .3333, .4445, .1481, and .0741 for Years 1 to 4, respectively. What is the amount of the depreciation expense in Year 3 assuming no bonus depreciation is taken?

• A) $28,747.10
• B) $42,399.29
• C) $57,455.40
• D) $59,929.11
• E) $12,766.59

---

Definitions:

Accounting Period

A specific time period at the end of which an organization prepares financial statements, commonly a quarter or year.

Operating Cash Receipts

The cash received by a company from its operational activities, such as cash from sales or services rendered.

Operating Cash Payments

Cash payments made by a business for its operational activities, such as paying for goods, services, and employee salaries.