Federal Express Bought Material Handling Equipment for Its Hub Operations

question 29

Multiple Choice

Federal Express bought material handling equipment for its hub operations that cost $180,000. Using the MACRS, what is the depreciation expense in year 3 (using a five-year class) ?

• A)$15,360
• B)$40,000
• C)$43,560
• D)$34,560
• E)None of these

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Definitions:

Miller

Refers to George A. Miller, a cognitive psychologist best known for his theory regarding the limit of short-term memory capacity, often summarized as "seven, plus or minus two" pieces of information.

Memory Capacity

Memory capacity refers to the amount of information that can be stored in the memory system at any given time.

Sensory Register

The component of memory that holds incoming sensory information for a very short period of time, almost like a snapshot.

Duration

The length of time that something continues or exists.