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wariber [46]
3 years ago
6

Your company just bought a new distillation unit for $175,000 to be used for research and development. Such equipment has a 3-ye

ar MACRS classification. The MACRS percentages are 33.33 percent, 44.44 percent, 14.82 percent, and 7.41 percent, respectively. What is the book value of the distillation unit at the end of year 2?A) $12,968.00B) $38,902.50C) $49,833.50D) $77,770.00E) $116,673.50
Business
1 answer:
SVEN [57.7K]3 years ago
7 0

Answer:

B) $38,902.50

Explanation:

The MACRS percentages are

First year = 33.33 percent

Second year = 44.44 percent

Third year = 14.82 percent

Fourth year = 7.41 percent

First Year 33.33% = $175,000 * 33.33/100 = $116,672.50

Second Year 44.44% = $116,672.50 - ($175,000 * 44.44/100)

= $116,672.50 - $77,770.00 = $38,902.50

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Answer:

attached is the diagram

Explanation:

Each extra worker produces an extra unit of output, is said to be the marginal production of an extra worker employed

marginal production  :

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