Depreciation A finn evaluating the aca sten of an assee mat costs s62300 and ea

Question

Depreciation A finn evaluating the aca sten of an assee mat costs s62300 and ea es $3.83o ih n sealaton costs ?t me firm deprecates ? e asset un der MA RS usr g 5-year tecovery per od cee* tabl* determine n* deprecato charpe for Round to the earet doar) The annual depreciation expense for year 2 wil bRound to the nearest doilar) The annual depreciaion expense for year 3 will be sRound to the earest dollar) The annual depreclation expense for year 4 will be sRound to the nearest doilar) The annual depreciation expense for year 5 willbe Round to the nearest dollar) Cick on the lcon located on the top-ight cormer of the data table belou in order to copy its contents into a Rounded Depreciation Pecentages by Recovery Year Using MACRS for First Four Property Classes The annual depreciation expense tor year 6 wil be s Round to the neares olar) Round to the nearest dolar) 12% 12% 12% 7% 6% the actual depreciason for ta purposes,be sune to unrounded percentages or directy apply double-decing balance (200%) depreason using the half-year

Explanation / Answer

Total depreciable cost of asset = $62,300 + $3,830 = $66,130

Year Rate Depreciation 1 20% $66,130 x 20% = $13,226 2 32% $66,130 x 32% = $21,162 3 19% $66,130 x 19% = $12,565 (or $12,564) 4 12% $66,130 x 12% = $7,936 (or $7,935) 5 12% $66,130 x 12% = $7,936 (or $7,935) 6 5% $66,130 x 5% = $3,307 (or $3,306)

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