Use the MACRS Depreciation Rates Table to Solve the Problem

question 81

Multiple Choice

Use the MACRS depreciation rates table to solve the problem. Round to the nearest dollar.
-NewAge Consulting purchased a desktop publishing system (5-year property) at a cost of $9,600.
Find the accumulated depreciation at the end of 3 years.

• A)$5,402
• B)$7,941
• C)$8,889
• D)$6,835

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Definitions:

Sale Of Inventory

The process of selling the goods that a business has produced or bought to its customers.

Receipt Of Inventory

The process of acknowledging or taking in goods received, usually marking the physical arrival of stock in a business.

Collection Of Receivable

The process of managing and collecting payments owed to a company by its customers for products or services provided on credit.

Accounts Payable Period

The average number of days it takes for a business to pay its suppliers.