RP&A,IncPurchased Some Fixed Assets Four Years Ago at a Cost

question 50

Multiple Choice

RP&A,Inc.purchased some fixed assets four years ago at a cost of $19,800.It no longer needs these assets,so it is going to sell them today at a price of $3,500.The assets are classified as 5-year property for MACRS.What is the current book value of these assets?

• A)$1,140.48
• B)$3,421.44
• C)$3,500.00
• D)$4,016.67
• E)$5,702.40

---

Definitions:

Fatty Acid

Carboxylic acids with long hydrocarbon chains, which are components of lipids in the body and are used in various industrial applications.

Herring Oil

A type of oil obtained from the processing of herring fish, rich in omega-3 fatty acids.

Olive Oil

An oily substance extracted from the fruit of olive trees, which are native to the Mediterranean region, utilized in culinary practices, beauty products, medical formulations, soap making, and as a source of illumination in classic oil lamps.

Soybean Oil

An oil extracted from the seeds of the soybean plant, widely used for cooking and in food products.