A Tractor Costing $80,000 Is Depreciated Using MACRS What Is the Depreciation Expense for Year 2?
A)$44,450
B)$35,560

question 12

Multiple Choice

A tractor costing $80,000 is depreciated using MACRS.The tractor qualifies as a 3-year property,and has a scrap value of $20,000.The depreciation rates are: $\begin{array} { | l | l | } \hline \text { Year 1: } & 33.33 \% \\\hline \text { Year 2: } & 44.45 \% \\\hline \text { Year 3: } & 14.81 \% \\\hline \text { Year 4: } & 7.41 \% \\\hline\end{array}$ What is the depreciation expense for year 2?

• A)$44,450
• B)$35,560
• C)$26,670
• D)$20,000

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Definitions:

Intercalated Discs

Specialized connections between cardiac muscle cells that facilitate the synchronized contraction of the heart.

Contraction

The process of muscle fibers shortening and generating force, resulting in the movement or stabilization of parts of the body.

Desmosomes

Strong cell junctions that anchor cells to each other in tissues subject to stretching, like skin and heart muscle.