Under MACRS, an Asset Which Originally Cost $100,000 Is Being

question 51

Multiple Choice

Under MACRS, an asset which originally cost $100,000 is being depreciated using a 10-year normal recovery period. The depreciation expense in year 5 is ________.

• A) $10,000
• B) $12,000
• C) $21,000
• D) $ 9,000

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Definitions:

Multinational Corporations

Companies that operate in multiple countries, managing production or delivering services in more than one country.

Low-Wage Nations

Countries where the general level of wages is significantly lower than in developed nations.

Productive

The ability to generate a significant amount of output (goods or services) per unit of input (labor, capital, etc.).

Merchandise Balance of Trade

The difference in value between a country's merchandise exports and merchandise imports over a certain period.