You Just Purchased Some Equipment That Is Classified as 5-Year

question 9

Multiple Choice

You just purchased some equipment that is classified as 5-year property for MACRS. The equipment cost $67,600. What will the book value of this equipment be at the end of three years should you decide to resell the equipment at that point in time?

• A) $19,468.80
• B) $20,280.20
• C) $27,040.00
• D) $48,131.20
• E) $48,672.00

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Definitions:

Pricing Decisions

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