graphic designworks purchased $8000 worth of office furniture in 2005. according to the macrs table, how…

graphic designworks purchased $8000 worth of office furniture in 2005. according to the macrs table, how much money can they deduct from their expenses in the first year?\n\na. $571.60\nb. $1245.40\nc. $1143.20\nd. $1429.00

graphic designworks purchased $8000 worth of office furniture in 2005. according to the macrs table, how much money can they deduct from their expenses in the first year?\n\na. $571.60\nb. $1245.40\nc. $1143.20\nd. $1429.00

Answer

Answer:

D. $1429.00

Explanation:

Step1: Identify MACRS rate

Office furniture is 7 - year property under MACRS. The first - year depreciation rate for 7 - year property is 14.29%.

Step2: Calculate deduction

Deduction = Cost of furniture×Depreciation rate. Given cost = $8000 and rate = 0.1429. So, Deduction = $8000×0.1429 = $1429.00