1. Better Beverages purchased some fixed assets classified as five-year property for MACRS. The assets cost $108,000. The MACRS rates are .2, .32, .192, .1152, .1152, and .0576 for years 1 to 6, respectively. What will the accumulated depreciation be at the end of Year 4?
$101,779.20
$25,056.67
$42,002.89
$48,755.09
$89,337.60
2. Using the ----------------------------- would be least expensive for the borrower when determining the total amount to be paid to the lender .
sum-of-the-digits method
simple interest method
add-on interest method
discount method