Sample FE Exam Problems

Solutions
16. What to do: Determine Asset Depreciation by SL or MACRS Methods
1.

D = 20,000 2,000
5
= $3,600 per year
Answer is (a)

2.

D = 30,000 6,000
3
= $8,000 per year
Answer is (a)

3.

From table, depreciation factor is 14.40%

D = 30,000(0.144)
= $4,320
Answer is (b)

4.

D = 50,000 10,000
5
= $8,000 per year
Answer is (a)

5.

Total depreciation = First cost BV after 3 years

= 50,000 21,850
= $28,150
Answer is (d)