Annas, Inc. just purchased some equipment at a cost of $20,000. What i

QUESTION

Annas, Inc. just purchased some equipment at a cost of $20,000. What is the accumulated depreciation of this equipment after year 3 if the company applies a 3 year MACRS depreciation schedule?3 Year MACRSYear 1 2 3 4Depreciation % 33.33% 44.45% 14.81% 7.41%Answera.$1,482b.$15,720c.$18,518d.$2,962
Calculation of depreciton expense for three years as follows. Year Asset value Depreciation(%) Depreciarion($) 1 20000 33.33% 6666 2 20000 44.45% 8890 3 20000 14.81% 2962 18518 Accumulated depreciation is

sum of all depreciation expenses upto third year.Therefore Accumulated depreciation afeter three years is $18,518. Option C is correct.

ANSWER:

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