Under MACRS, an Asset Which Originally Cost $10,000 Is Being

question 162

Multiple Choice

Under MACRS, an asset which originally cost $10,000 is being depreciated using a 5-year normal recovery period. What is the depreciation expense in year 3?

• A) $1,900
• B) $1,200
• C) $1,500
• D) $2,100

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Definitions:

Default Judgment

A binding judgment in favor of either party based on some failure to take action by the other party, usually the defendant.

Mandamus

A court order directing that a specific act be performed.

Certiorari

A writ issued by a high court to a lower court or tribunal, requesting the lower entity to send all documents in a case it has tried for review.

Declaratory Judgment

A declaration by the court as to what the law is in any matter brought before it.