Question

17. The first and last years of MACRS depreciation deductions for a 5-year asset costing $10,000 using the half-year convention are:

a. $2,000 and $576

b. $2,000 and $1,000

c. $2,000 and $1,152 d. $2,000 and $2,000

Answer 1

A. $2000 and $576

Assets cost

10,000.00

Year	MACRS Deduction Rate	Deduction
1	20%	2,000.00
2	32%	3,200.00
3	19.20%	1,920.00
4	11.52%	1,152.00
5	11.52%	1,152.00
6	5.76%	576.00

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