Use the MACRS 5-year schedule to determine the maximum yearly depreciation allowance for a piece of...
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Use the MACRS 5-year schedule to determine the maximum yearly depreciation allowance for a piece of equipment that has an original value of $ 130,000, including double declining balance switching to straight-line method with half-year convention. Please show all your calculations, and then list the results in a table.
Homework Answers
Solution:
| Year | Depreciation Expense |
| 1 | $ 26,000 |
| 2 | $ 41,600 |
| 3 | $ 24,960 |
| 4 | $ 14,976 |
| 5 | $ 14,976 |
| 6 | $ 7,488 |
Calculation:
| Year |
Original Cost (a) |
Macrs Rate (Half Year) @ 5 years (b) | Depreciation Expense (a*b) | Accumulated Depreciation |
| 1 | $ 130,000 | 20.00% | $ 26,000 | $ 26,000 |
| 2 | $ 130,000 | 32.00% | $ 41,600 | $ 67,600 |
| 3 | $ 130,000 | 19.20% | $ 24,960 | $ 92,560 |
| 4 | $ 130,000 | 11.52% | $ 14,976 | $ 107,536 |
| 5 | $ 130,000 | 11.52% | $ 14,976 | $ 122,512 |
| 6 | $ 130,000 | 5.76% | $ 7,488 | $ 130,000 |
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Use the MACRS 5-year schedule to determine the maximum yearly
depreciation allowance for a piece of...
Use the MACRS 5 year schedule to determine the maximum yearly depreciation allowance for a piece...
Use the MACRS 5 year schedule to determine the maximum yearly depreciation allowance for a piece of equipment that has an original value of $130,000, including double declining balance switching to straight-line method with half‐year convention. Please show all your calculations,and then list the results in a table.
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uy WORK On August 3, Cinco Construction purchased special-purpose equipment at a cost of $5,239,900. The useful life of the equipment was estimated to be eight years, with an estimated residual value of $37,830. a. Compute the depreciation expense to be recognized each calendar year for! financial reporting purposes under the straight-line depreciation method (half- year convention). b. Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the 200 percent declining-balance method (half-year convention)...
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