16. An asset originally cost $100,000, also incurred installation costs of $10,000 and has an estimated salvage value of $25,000. It is being depreciated under MACRS, 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

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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16. An asset originally cost $100,000, also incurred installation costs of $10,000 and has an estimated salvage value of $25,000. It is being depreciated under MACRS, 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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