Find the First Year's Depreciation Using the MACRS Method of Depreciation

question 65

Multiple Choice

Find the first year's depreciation using the MACRS method of depreciation and the MACRS depreciation rates table. Round to the nearest dollar.
-Cost: $296,500
Period: 7-year

• A)$42,370
• B)$59,300
• C)$72,613
• D)$29,650

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Definitions:

Average Total Cost

The total cost of production divided by the quantity produced, it measures the average cost per unit of a product.

Competitive Firm

A business that operates in a market with many sellers offering similar or slightly differentiated products, resulting in limited market power for individual firms.

Long Run

A period during which all factors of production and costs can be fully adjusted, allowing for a complete analysis of economic equilibrium and effects.

Expanding Plant

The process of increasing the size or capacity of a manufacturing or production facility.