Question

A piece of construction equipment (asset class 15.0) was purchased by the Jones Construction Company. The cost basis was $320,000. a. Determine the GDS and ADS depreciation deductions for this property. b. Compute the difference in PW of the two sets of depreciation deductions in Part (a) if i = 10% per year. 5 Click the icon to view the partial listing of depreciable assets used in business. 3 Click the icon to view the GDS Recovery Rates (r). Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. a. Determine the GDS depreciation deductions for this property. (Round to the nearest dollar.) Year The GDS depreciation deductions, $ oo AWN- OOOOOO
PLEASE ANSWER WILL RATE

Answer 1

PFB calculation.

GDS & ADS Depreciation.xlsx - Saved Pagri, Dhiraj - ) AutoSave on AS Home Insert A Page Layout , Formulas X Share File Data Review View Help Tell me what you want to do .11 AutoSum - Ay A AA === > Wrap Text General E Merge & Center - $ -% Alignment Number Clear - ** X Cut Calibri Copy Paste Format Painter BIV Clipboard E1 - X A B Cell Styles Conditional Format as Formatting Table - Styles Insert Delete Format - - Cells Sort & Find & Filter - Select Editing Font for C D E F G H I J K L - Answer to a Constructions 15 Nature of Property Asset Class Cost No fo years for Depreciation Years $320,000 Tu GDS (% of Depreciation) GDS Depreciation ADS % of Depreciation ADS Depreciation 0.2000 $64,000 0.0833 $26,667 0.3200 $102,400 0.1667 $53,333 0.1920 $61,440 0.1667 $53,333 0.1152 $36,864 0.1667 $53,333 0.1152 0.1667 $53,333 0.0576 0.1667 $53,333 0.0833 $26,667 1.00 $320,000 1.00 $320,000 Depreciation % culled out from the the GDS recovery rate table No of years 6, assuming half years convention method, 1st year and last year will have 50% amount of each year's depreciation. $36,864) $18,432' Total Answer to b Sheet1 Ready a 2 -- 120 @ @ @ @ wa ] 0 Pa + 100% 532 PM 11/2/2019 20 VIA *

Answer to b
PW for GDS
Years	Depreciation Amount	Capital Recovery Factor	PW Amount
1	$64,000	1.1000	$70,400
2	$102,400	0.5762	$59,003
3	$61,440	0.4021	$24,705
4	$36,864	0.3155	$11,631
5	$36,864	0.2638	$9,725
6	$18,432	0.2296	$4,232
7		0.2054	$0
Total	$320,000		$179,695
PW for ADS
Years	Depreciation Amount	Capital Recovery Factor	PW Amount
1	$26,667	1.1000	$29,333
2	$53,333	0.5762	$30,731
3	$53,333	0.4021	$21,445
4	$53,333	0.3155	$16,827
5	$53,333	0.2638	$14,069
6	$53,333	0.2296	$12,245
7	$26,667	0.2054	$5,477
Total	$320,000		$130,128
		Difference	$49,567