A piece of newly purchased industrial equipment costs $974,000 and is classified
ID: 2770038 • 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.)
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
Statement showing computations Year Beginning Book Value Depreciation Rate Depreciation Ending book Value 1.00 974,000.00 14.29% 139,184.60 834,815.40 2.00 834,815.40 24.49% 238,532.60 596,282.80 3.00 596,282.80 17.49% 170,352.60 425,930.20 4.00 425,930.20 12.49% 121,652.60 304,277.60 5.00 304,277.60 8.93% 86,978.20 217,299.40 6.00 217,299.40 8.92% 86,880.80 130,418.60 7.00 130,418.60 8.93% 86,978.20 43,440.40 8.00 43,440.40 4.46% 43,440.40 0.00 100.00%
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