A piece of newly purchased industrial equipment costs $974,000 and is classified
ID: 2717148 • Letter: A
Question
A piece of newly purchased industrial equipment costs $974,000 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. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
I just need the beginning book values for year 1-8.
A piece of newly purchased industrial equipment costs $974,000 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. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Explanation / Answer
Year Beginning Book Value Depreciation % Depreciation Ending Book Value 1 974000.00 14.29% 139184.60 834815.40 2 834815.40 24.49% 204446.29 630369.11 3 630369.11 17.49% 110251.56 520117.55 4 520117.55 12.49% 64962.68 455154.869 5 455154.87 8.93% 40645.33 414509.54 6 414509.54 8.93% 37015.70 377493.84 7 377493.84 8.93% 33710.20 343783.64 8 343783.64 4.46% Beginning Book Value as on Year 8 = 343783.64
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