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:

Union-Negotiated

Agreements or contracts about wages, working conditions, and other employment terms that are discussed and decided upon through collective bargaining by unions on behalf of employees.

Retirement Account

A financial account designed specifically for savings for retirement, often offering tax advantages.

National Labor Relations Board

A federal agency established in the United States to enforce labor laws in relation to collective bargaining and unfair labor practices.

Unfair Labor Practices

Actions by employers or unions that violate the rights of employees as defined by labor laws or labor agreements.