A piece of newly purchased industrial equipment costs $976,000 and is classified

Question

A piece of newly purchased industrial equipment costs $976,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule is shown in Table 10.7. Calculate the annual depreciation allowances and end-of-the-year book values for this equipment. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places. (e.g., 32.16))

Year Beginning Book Value Depreciation Ending book Value 1 $ $ $ 2 $ $ $ 3 $ $ $ 4 $ $ $ 5 $ $ $ 6 $ $ $ 7 $ $ $ 8 $ $ $

Explanation / Answer

Answer

Working

Year Beginning Book Value Depreciation Ending book Value 1                                    976,000.00        139,470.40                        836,529.60 2                                    836,529.60        239,022.40                        597,507.20 3                                    597,507.20        170,702.40                        426,804.80 4                                    426,804.80        121,902.40                        304,902.40 5                                    304,902.40          87,156.80                        217,745.60 6                                    217,745.60          87,059.20                        130,686.40 7                                    130,686.40          87,156.80                          43,529.60 8                                      43,529.60          43,529.60 0.00

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