Atlas Manufacturing Purchased a New Computer System in 2018 at a Cost

question 27

Multiple Choice

Atlas Manufacturing purchased a new computer system in 2018 at a cost of $622,400. This system falls in the 5-year MACRS class that has depreciation allowance percentages of 20, 32, 19.2, 11.52, 11.52, and 5.76. What is the maximum amount of depreciation the firm can claim on this system in the first year if it selects the bonus depreciation method?

• A) $311,200
• B) $124,480
• C) $199,168
• D) $622,400
• E) $155,600

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Definitions:

Corn

A cereal plant that yields large kernels on a cob, widely grown for food, fodder, and ethanol production.

Set Point

The target value or condition that a control system aims to maintain through its outputs, such as a specific temperature in a heating system.

Controller's Response

The action or set of actions taken by a controller device in reaction to input signals or conditions, pivotal in systems control and automation.