A company is buying machinery for their manufacturing floor that is worth $455,000. The machinery has...

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A company is buying machinery for their manufacturing floor that is worth $455,000. The machinery has...

A company is buying machinery for their manufacturing floor that is worth $455,000. The machinery has a service life of 7 years. Develop a depreciation table for this asset according to MACRS.

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Answer 1

Answer #1

Using excel formula to create table

	Initial Investment	Macrs Rate Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7
	455000	14.29%	24.49%	17.49%	12.49%	8.93%	8.92%	8.30%
Depreciation	0	65019.500	111429.500	79579.500	56829.500	40631.500	40586.000	37765.000
	Formula	455000*14.29%	455000*24.49%	455000*17.49%	455000*12.49%	455000*8.93%	455000*8.92%	455000*8.30%

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Answer 2

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