Question

Please I need help this one ASAP

3. "You want to design your office. For this purpose, your purchased office furniture for $37,000, paid $4,900 for its freight and $1200 for installation. What is the tax depreciation amount you can take in year 5? (Assume a 7-Year MACRS)"

Answer 1

Depreciation amount in year 5			$   3,848.83
Working:
Calculation of cost of Furniture:
Purchase price	$       37,000
Freight	$         4,900
Installation	$         1,200
Cost of Furniture	$       43,100
Depreciation Schedule:
Year	Cost	Depreciation rate	Depreciation expense	Accumulated Depreciation expense	Book Value at the end of year
	a	b	c=a*b	d	e=a-d
1	$       43,100	14.29%	$   6,158.99	$   6,158.99	$ 36,941.01
2	$       43,100	24.49%	$ 10,555.19	$ 16,714.18	$ 26,385.82
3	$       43,100	17.49%	$   7,538.19	$ 24,252.37	$ 18,847.63
4	$       43,100	12.49%	$   5,383.19	$ 29,635.56	$ 13,464.44
5	$       43,100	8.93%	$   3,848.83	$ 33,484.39	$   9,615.61
6	$       43,100	8.92%	$   3,844.52	$ 37,328.91	$   5,771.09
7	$       43,100	8.93%	$   3,848.83	$ 41,177.74	$   1,922.26
8	$       43,100	4.46%	$   1,922.26	$ 43,100.00	$ 0.00
Total		100.00%	$ 43,100.00