BLD,Incjust Purchased Some Fixed Assets at a Total Cost of $94,318

question 32

Multiple Choice

BLD,Inc.just purchased some fixed assets at a total cost of $94,318 that are classified as 3-year property for MACRS.The MACRS table values are 0.3333,0.4445,0.1481,and 0.0741 for Years 1 to 4,respectively.What is the amount of the depreciation expense for Year 3?

• A)$13,968.50
• B)$14,602.94
• C)$5,173.26
• D)$8,044.36
• E)$6,988.96

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Definitions:

Torque Converter

A fluid coupling used to transfer rotating power from an engine to the transmission in vehicles.

Planetary Gearset

A complex system of gears that includes a central sun gear, multiple planet gears, and an outer ring gear, used in many automatic transmissions.

Sun Gear

The central or axis gear in a planetary gearset. It may be optioned to rotate or not rotate, depending on the gear arrangement and desired output ratios.

Ring Gear

A large gear that meshes with a smaller gear (pinion), often used in the differential of an automobile.