Bernie's Beverages Purchased Some Fixed Assets Classified as 5-Year Property

question 102

Multiple Choice

Bernie's Beverages purchased some fixed assets classified as 5-year property for MACRS.The assets cost $94,000.What will the accumulated depreciation be at the end of year three?

• A)$13,520
• B)$25,056
• C)$38,241
• D)$48,759
• E)$66,928

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Definitions:

Partnership Property

Assets or property owned by a partnership, which are used in the operation of the business and subject to the rights and interests of the partners.

Partner's Interest

A reference to an individual's ownership stake or share in a partnership, reflecting their rights to profits and obligations for losses.

Assignability

The capability of a contractual right or duty to be transferred from one party to another.

Inheritability

The characteristic of a trait, such as property or genetic information, that allows it to be passed down from one generation to the next through inheritance.