A piece of newly purchased industrial equipment costs $967,000 and is classified

Question

A piece of newly purchased industrial equipment costs $967,000 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:-

=(967000 * 14.29%)

=138184.3

=(967000 - 138184.3)

=828815.7

=(828815.7 * 24.49%)

=202976.96

=(625838.74 * 17.49%)

=109459.20

=(516379.54 * 12.49%)

=64495.80

=(451883.74 * 8.93%)

=40353.22

=(411530.52 * 8.92%)

=36708.52

=(374822 * 8.93%)

=33471.60

=(341350.40 * 4.46%)

=15224

Year Beginning Book Value Depreciation Ending Book Value 1 967000

=(967000 * 14.29%)

=138184.3

=(967000 - 138184.3)

=828815.7

2 828815.7

=(828815.7 * 24.49%)

=202976.96

625838.74 3 625838.74

=(625838.74 * 17.49%)

=109459.20

516379.54 4 516379.54

=(516379.54 * 12.49%)

=64495.80

451883.74 5 451883.74

=(451883.74 * 8.93%)

=40353.22

411530.52 6 411530.52

=(411530.52 * 8.92%)

=36708.52

374822 7 374822

=(374822 * 8.93%)

=33471.60

341350.40 8 341350.40

=(341350.40 * 4.46%)

=15224

326226.4

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