You Just Purchased $218,000 of Equipment That Is Classified as Five-Year

question 77

Multiple Choice

You just purchased $218,000 of equipment that is classified as five-year MACRS property. The MACRS rates are .2, .32, .192, .1152, .1152, and .0576 for Years 1 to 6, respectively. What will be the book value of this equipment at the end of three years assuming no bonus depreciation is taken?

• A) $58,467
• B) $62,784
• C) $159,533
• D) $67,670
• E) $155,216

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Definitions:

Antitrust Prosecution

Legal action taken against companies or entities suspected of engaging in practices that restrict competition, violating antitrust laws designed to protect free trade and competition.

Right To Work Laws

Legislation that prohibits agreements between labor unions and employers that make membership or payment of union dues or fees a condition of employment, either before or after hiring.

Wagner Act

A foundational statute in United States labor law that guarantees the right of private sector workers to organize into trade unions, engage in collective bargaining, and take collective action.

Union Power

The influence labor unions have over working conditions, wages, and benefits for their members through negotiation and collective action.