Answer:
a) $7,488
Explanation:
depreciation expense per year:
year 1 = $39,000 x 20% = $7,800
year 2 = $39,000 x 32% = $12,480
<u>year 3 = $39,000 x 19.20% = $7,488 ⇒ third year</u>
year 4 = $39,000 x 11.52% = $4,492.80
year 5 = $39,000 x 11.52% = $4,492.80
year 6 = $39,000 x 5.76% = $2,246.40
IN order to calculate MACRS depreciation, just multiply the assets depreciable value times the depreciation percentage.
