Year 0 Year 1 Year 2 Year 3 MACRS Depreciation Rate 33.33% 44.45% 14.81% 7.41% A...
| Year 0 | Year 1 | Year 2 | Year 3 |
MACRS
| Depreciation Rate | 33.33% | 44.45% | 14.81% | 7.41% |
A firm is considering the purchase of a new machine for $325,000.
The firm is unsure if it should use the 3-Year MACRS schedule or
straight-line depreciation over three years. What is the difference
in the book value after three years if the firm uses MACRS instead
of straight-line depreciation?
Group of answer choices
$300,918
$48,166
$0
$24,083
Homework Answers
rate positively ..
| Cost of machine = | 325000 | |
| Straight line | ||
| Straight line depreciation = | $ 108,333.33 | |
| 325000/3 | ||
| Book value after 3 year = | 0 | |
| 325000-10833.33*3 | ||
| MACRS | ||
| Book value after 3 year = | 24083 | |
| 325000*7.41% | ||
| Difference = | 24083 | |
| 24083-0= | ||
| answer = | $ 24,083 | |
Add Answer to:
Year 0
Year 1
Year 2
Year 3
MACRS
Depreciation Rate
33.33%
44.45%
14.81%
7.41%
A...
Year OVOU AON Property Class Three-Year Five-Year 33.33% 20.00% 44.45 32.00 14.81 19.20 7.41 11.52 11.52...
Year OVOU AON Property Class Three-Year Five-Year 33.33% 20.00% 44.45 32.00 14.81 19.20 7.41 11.52 11.52 5.76 Seven-Year 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46 A piece of newly purchased industrial equipment costs $979,000 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 fo this equipment. (Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate...
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