Three Years Ago, Hi Tek Purchased Some 5-Year MACRS Property

question 106

Multiple Choice

Three years ago, Hi Tek purchased some 5-year MACRS property for $67,400. Today, it is selling this property for $28,000. How much tax will the firm owe on this sale if the tax rate is 34 percent? The MACRS allowance percentages are as follows, commencing with year one: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent.

• A) -$2,920
• B) -$1,480
• C) $0
• D) $1,480
• E) $2,920

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Definitions:

Hollywood System

The traditional practices, structures, and methods of the major film studios in Hollywood, focusing on the star system and genre films.

Nonlinear Flashback

A narrative technique used in storytelling where the chronological sequence of events is disrupted, often through the insertion of memories or past events at points in the story where they provide context or emotional depth.

Narrative Structure

The organizational framework of a story, outlining the way in which its plot is constructed, including the exposition, rising action, climax, falling action, and resolution.

Wartime Filmmaking

The production of movies during periods of war, often characterized by themes of patriotism, propaganda, and the depiction of heroism and sacrifice.