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ABC Company purchased a 3-year MACRS property for $49,330 one year ago. What is the current...

ABC Company purchased a 3-year MACRS property for $49,330 one year ago. What is the current book value of this equipment?
The MACRS allowance percentages are as follows, starting with year one: 33.33, 44.45, 14.81, and 7.41 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

The current book value of this equipment in Year-1

MACRS Depreciation expense for the first year = Cost of equipment x Percentage of Depreciation Year 1

= $49,330 x 33.33%

= $16,441.69

Therefore, the current book value of this equipment in Year-1 = Cost of Equipment - MACRS Depreciation expense for the first year

= $49,330 - $16,441.69

= $32,888.31

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