An Asset Fitting into the 7-Year MACRS Category Was Purchased

question 9

Multiple Choice

An asset fitting into the 7-year MACRS category was purchased 2 years ago for $72,000. The book value of this asset is now

• A) $44,064
• B) $31,200
• C) $48,317
• D) $60,052

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Definitions:

Decimal Places

Decimal places refer to the number of digits to the right of the decimal point in a number. For example, in the number 3.142, there are three decimal places.

Effective Yield

The total yield of a financial investment, considering compound interest or reinvestments.

Decimal Places

The amount of digits found following the decimal point in a numerical value.

Experimental Growth Model

A theoretical construct that uses empirical data to model how quantities grow over time, often nonlinearly.