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
Answer:D
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