Ask Question
8 May, 09:09

You invest in a project that has a depreciable asset. The asset is depreciable under the 5year MACRS category. The depreciation percentages for all six years are: 0.20, 0.32, 0.192, 0.115, 0.115, 0.058. On an asset worth $150,000. How much depreciation do you get to claim in year 3? a. $14, 375 b. $30,000 c. $28, 800 d. $7, 250

+1
Answers (1)
  1. 8 May, 12:32
    0
    c.$28,800

    Explanation:

    Depreciation of the asset is calculated using the following formula:

    Depreciation=Cost of Asset*Depreciation percentage for specific year

    Keeping in mind the above formula, depreciation can be calculated as follow:

    Cost of Asset=$150,000

    Depreciation for year 1=150,000*0.20=$30,000

    Depreciation for year 2=150,000*0.32=$48,000

    Depreciation for year 3=150,000*0.192=$28,800

    Therefore, the answer is c.$28,800
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “You invest in a project that has a depreciable asset. The asset is depreciable under the 5year MACRS category. The depreciation percentages ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers