According to the Modified Accelerated Cost Recovery System (MACRS), Automobiles

question 182

Multiple Choice

According to the Modified Accelerated Cost Recovery System (MACRS) , automobiles are to be placed with other assets that have a five-year class life. Assume Dallmeyer Digital bought a car in December 2004. What would be the last year in which it would take recognize depreciation on the vehicle?

• A)2004
• B)2009
• C)2010
• D)2011

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Definitions:

Cost Conditions

The specific factors affecting the cost of production or service delivery, including material costs, labor expenses, and overheads.

Output

The total amount of goods or services produced by a company, industry, or economy.

Increasing Cost Industry

An industry in which production costs rise as output increases, often due to factors like limited resources or higher prices for inputs.

Constant Cost Industry

An industry in which the costs of production do not change as the industry's output changes, maintaining the same unit cost for production regardless of scale.