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Under MACRS, an Asset Which Originally Cost $100,000, Incurred Installation

Question 99

Multiple Choice

Under MACRS, an asset which originally cost $100,000, incurred installation costs of $10,000, and has an estimated salvage value of $25,000, is being depreciated using a 5-year normal recovery period. What is the depreciation expense in year 1?


A) $15,000
B) $12,750
C) $11,250
D) $22,000

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