Classic Cars Is Considering a Project That Requires $148,000 of Fixed

question 64

Multiple Choice

Classic Cars is considering a project that requires $148,000 of fixed assets that are classified as five-year property for MACRS.What is the book value of these assets at the end of year 3? The MACRS allowance percentages are as follows,commencing with year 1:
20) 00,32.00,19.20,11.52,11.52,and 5.76 percent.

• A)$34,210
• B)$36,667
• C)$42,624
• D)$43,450
• E)$44,504

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Definitions:

Accountant & Taxes

Pertains to the work of keeping financial records, preparing tax returns, and advising on tax liabilities.

Cash Basis Accounting

An accounting method in which revenues and expenses are recorded only when cash is received or paid out, not when the transaction occurs.

Goods

Physical items that are produced or purchased for sale.

Services

Intangible products such as expertise, assistance, or access to resources provided by businesses or professionals.