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A project requires $72,645 of equipment that is classified as a 7-year property. What is the...

A project requires $72,645 of equipment that is classified as a 7-year property. What is the depreciation expense in Year 5 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.

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Answer #1

Year 5 depreciation rate is 8.93%

Depreciation as per MACRS schedule is provided on cost of asset.

Depreciation in year 5= Cost of asset * depreciation rate

72645*8.93%

=6487.20

So depreciation expense in Year 5 is $6487.20

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