A Tractor Costing $80,000 Is Depreciated Using MACRS

question 9

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: 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:

Decentralization

The distribution of administrative powers or functions across various levels within an organization, as opposed to having them concentrated at a single point.

Advantage

Advantage refers to a favorable position or condition that enhances the probability of success or effectiveness in a competitive environment.

Responsibilities

Duties or obligations that an individual or organization is required or expected to perform.

Decentralization

The distribution of decision-making powers and operational activities away from a central authoritative location or group.