Keyser Petroleum just purchased some equipment at a cost of $67,000.What is the proper methodology for computing the depreciation expense for year 2 if the equipment is classified as 5-year property for MACRS?
A)$67,000 × (1 - 0.20) × 0.32
B)$67,000/(1 - 0.20 - 0.32)
C)$67,000 × (1 + 0.32)
D)$67,000 × (1 - 0.32)
E)$67,000 × 0.32

Question

Keyser Petroleum just purchased some equipment at a cost of $67,000.What is the proper methodology for computing the depreciation expense for year 2 if the equipment is classified as 5-year property for MACRS? 
A)$67,000 × (1 - 0.20) × 0.32 
B)$67,000/(1 - 0.20 - 0.32) 
C)$67,000 × (1 + 0.32) 
D)$67,000 × (1 - 0.32) 
E)$67,000 × 0.32

Quizplus · Accepted Answer

The Answer of Keyser Petroleum just purchased some equipment at a cost of $67,000.What is the proper methodology for computing the depreciation expense for year 2 if the equipment is classified as 5-year property for MACRS? 
A)$67,000 × (1 - 0.20) × 0.32 
B)$67,000/(1 - 0.20 - 0.32) 
C)$67,000 × (1 + 0.32) 
D)$67,000 × (1 - 0.32) 
E)$67,000 × 0.32

Keyser Petroleum Just Purchased Some Equipment at a Cost of $67,000.What