Danworth Company Is Contemplating Whether to Use MACRS Depreciation or Straight-Line

question 144

Multiple Choice

Danworth Company is contemplating whether to use MACRS depreciation or straight-line depreciation for a plant asset.The following information is available:
$\begin{array}{llll}&\text { MACRS } & \text { Straight-line } & \text { Present Value of } \\&\text { Depreciation } & \text { Depreciation } & \text { One At } 12 \%\\\text { Year 1 } & \$ 13,333 & \$ 10,000 & 0.8929 \\\text { Year 2 } & \$ 17,780 & \$ 10,000 & 0.7972 \\\text { Year 3 } & \$ 5,924 & \$ 10,000 & 0.7118 \\\text { Year 4 } & \$ 2,964 & \$ 10,000 & 0,6355\end{array}$
Over the four years examined,how much did Danworth Company gain by using MACRS depreciation instead of straight-line depreciation for the plant asset? The tax rate is 40%.(Find the present value.)

• A) $722
• B) $1,806
• C) $2,976
• D) $9,178

Distinguish between aerobic and anaerobic respiration pathways and their by-products.

Explain the storage and mobilization of glucose as glycogen in different tissues.

Understand the ultimate energy source for living organisms and the process of photosynthesis.

Discuss the significance and mechanism of substrate-level phosphorylation in ATP production.

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Definitions:

Natural Product

A chemical compound produced by a living organism, often found in nature with potential benefits for pharmaceutical applications.

Specific Rotation

A physical property that measures the degree to which a compound is capable of rotating the plane of polarized light, used in the analysis of chiral substances.

Optically Active

A characteristic of a compound that has the ability to rotate the plane of polarized light, a property observed in chiral molecules.

(2R,3R)-2,3-dibromobutane

A specific enantiomer of dibromobutane characterized by its stereochemistry, with both chiral centers having R configuration, used in stereochemical studies.