RP&A, IncPurchased Some Fixed Assets Four Years Ago at a Cost

question 43

Multiple Choice

RP&A, Inc.purchased some fixed assets four years ago at a cost of $19,800.It no longer needs these assets so is going to sell them today at a price of $3,500.The assets are classified as 5-year property for MACRS.What is the current book value of these assets? $$\text { MACRS 5-year property }$$
$\begin{array}{ll}\underline{\text { Year }} & \underline{\text { Rate }} \\ 1 & 20.00 \% \\2 & 32.00 \% \\3 & 19.20 \% \\4 & 11.52 \% \\5 & 11.52 \% \\6 & 5.76 \%\end{array}$

• A)$1,140.48
• B)$3,421.44
• C)$3,500.00
• D)$4,016.67
• E)$5,702.40

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