A piece of newly purchased industrial equipment costs $966,000 and is classified

Question

A piece of newly purchased industrial equipment costs $966,000 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

Working

Year Beginning Book Value         Depreciation           Ending book Value [a] [b] [c= a-b] 1                                                            966,000.00                138,041.40                  827,958.60 2                                                            827,958.60                236,573.40                  591,385.20 3                                                            591,385.20                168,953.40                  422,431.80 4                                                            422,431.80                120,653.40                  301,778.40 5                                                            301,778.40                  86,263.80                  215,514.60 6                                                            215,514.60                  86,167.20                  129,347.40 7                                                            129,347.40                  86,263.80                    43,083.60 8                                                               43,083.60                  43,083.60                             0.00

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