Answer:
The correct answer is option B.
Explanation:
The Cost of Property is given at $ 216,000
.
The MACRS rates are 0.2, 0.32 and 0.192 for years 1 to 3 respectively.
Depreciation for the year 1 will be
= $216,000*0.2
= $43,200
Depreciation for the year 2 will be
=$216,000*0.32
=$69,120
Total Depreciation for the year 1 and 2 will be
=$43,200+$69,120
=$112,320
The book value of this equipment at the end of year 2
=$216,000-$112,320
=$103,680
On checking the above value with Answer B that is
=$216,000*(1-0.2-0.32)
=$216,000*0.48
=$103,680
I believe the answers are for 1) a. and 2) b. Hope this Helps!!!!:)
Answer: The correct answer is "standard production items".
Explanation: Items for which prices are comparatively stable and likely to be quoted on a list-price-less-discounts basis are called: <u>standard production items.</u>
<u>These standard production items are those that are obtained from countless sources in an easy way, generally the prices of these items are obtained from online catalogs and although prices may vary it is rare since they are quite moderate.</u>
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