During its current tax year (year one), a pharmaceutical company purchased a mixing tank that had a fair market price of $125,000. It replaced an older, smaller mixing tank that had a BV of $20,000. Because a special promotion was underway, the old tank was used as a trade-in for the new one, and the cash price (including delivery and installation) was set at $102,000. The MACRS class life for the new mixing tank is 9.5 years. If 200% DB depreciation had been applied to this problem, what would be the accumulative depreciation through the end of year four Select one: O a. $21,984 O b. $47,601.09 OC. $21,081.6 O d. $23,424
During its current tax year (year one), a pharmaceutical company purchased a mixing tank that had a fair market price of $125,000. It replaced an older, smaller mixing tank that had a BV of $20,000. Because a special promotion was underway, the old tank was used as a trade-in for the new one, and the cash price (including delivery and installation) was set at $102,000. The MACRS class life for the new mixing tank is 9.5 years. If 200% DB depreciation had been applied to this problem, what would be the accumulative depreciation through the end of year four Select one: O a. $21,984 O b. $47,601.09 OC. $21,081.6 O d. $23,424
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![During its current tax year (year one), a pharmaceutical company purchased a mixing tank that had a fair
market price of $125,000. It replaced an older, smaller mixing tank that had a BV of $20,000. Because a
special promotion was underway, the old tank was used as a trade-in for the new one, and the cash price
(including delivery and installation) was set at $102,000. The MACRS class life for the new mixing tank is 9.5
years. If 200% DB depreciation had been applied to this problem, what would be the accumulative
depreclation through the end of year four
Select one:
O a. $21,984
O b. $47,601.09
O C. $21,081.6
O d. $23,424](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5e6d4671-0cf0-4b0c-9ce1-e8aa19d124c8%2Ff498e48d-559a-45ce-a6e6-8f859853988a%2Ftadvdks_processed.jpeg&w=3840&q=75)
Transcribed Image Text:During its current tax year (year one), a pharmaceutical company purchased a mixing tank that had a fair
market price of $125,000. It replaced an older, smaller mixing tank that had a BV of $20,000. Because a
special promotion was underway, the old tank was used as a trade-in for the new one, and the cash price
(including delivery and installation) was set at $102,000. The MACRS class life for the new mixing tank is 9.5
years. If 200% DB depreciation had been applied to this problem, what would be the accumulative
depreclation through the end of year four
Select one:
O a. $21,984
O b. $47,601.09
O C. $21,081.6
O d. $23,424
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