A piece of newly purchased industrial equipment costs $1,020,000 and is classifi
ID: 1172572 • Letter: A
Question
A piece of newly purchased industrial equipment costs $1,020,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule is shown in MACRS Table.
Calculate the annual depreciation allowances and end-of-the-year book values for this equipment. (Do not include the dollar signs ($). Enter rounded answers as directed, but do not use the rounded numbers in intermediate calculations. Leave no cells blank. You must enter "0" for the answer to grade correctly.)
A piece of newly purchased industrial equipment costs $1,020,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule is shown in MACRS Table.
Explanation / Answer
Year Beginning Book Value Depreciation (MACRS Rate*Asset cost) Ending book Value 1 $ 1,020,000.00 $ 145,758.00 $ 874,242.00 1020000*0.1429 2 $ 874,242.00 $ 249,798.00 $ 624,444.00 1020000*0.2449 3 $ 624,444.00 $ 178,398.00 $ 446,046.00 1020000*0.1749 4 $ 446,046.00 $ 127,398.00 $ 318,648.00 1020000*0.1249 5 $ 318,648.00 $ 91,086.00 $ 227,562.00 1020000*0.0893 6 $ 227,562.00 $ 90,984.00 $ 136,578.00 1020000*0.0892 7 $ 136,578.00 $ 91,086.00 $ 45,492.00 1020000*0.0893 8 $ 45,492.00 $ 45,492.00 $ - 1020000*0.0446
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