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Company ABC has just purchased equipment at a cost of $12million. The equipment will be depreciation...

Company ABC has just purchased equipment at a cost of $12million. The equipment will be depreciation using a MACRS schedule - shown below. What depreciation expense will the company report for the equipment in year 4?

Year   Depreciation Rate
1 20%
2 32%
3 19%
4 18%

Enter your answer as a whole dollar amount (no decimals). Do not enter dollar signs or commas. Do not enter the value in millions.

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Answer #1

Dollar amount of depreciation =Initial Cost *Depreciation rate =12000000*18% =2160000
Amount of depreciation =2160000

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