Question

kindly help with part a), b), c) and d) without using excel. Thank you.

1-17 Consider a $6500 piece of machinery, with a 5-year depreciable life and an estimated $1200 salvage value. The projected utilization of the machinery when it was purchased, and its actual production to date, are as follows: Actual Projected Production (tons) Production (tons) Year 3000 3500 1 5000 4000 2 [Not 4500 3 5000 yet 4 known] 5500 5

this is just one question

Answer 1

	Straight Line#	Double declining Method##	100% Bonus###	MACRS*
1	1060	2600	6500	1300
2	1060	1560	0	2080
3	1060	936	0	1248
4	1060	204	0	748.80
5	1060	0	0	748.80
6	0	0	0	374.40

#SLM=> (6500-1200)/5 = 1060

## Double declining Method: Life is for 5 Years, So 1/5*100 = 20% under DDM, the rate is 2*20% = 40%

	Depreciation	WDV
1	6500*40% =2600	3900
2	3900*40% = 1560	2340
3	2340*40% = 936	1404
4	1404-1200 = 204	1200
5	0	1200

### Bonus Depreciation: As per , tax cuts and jobs act, depreciation up to 100% can be claimed as bonus depreciation in the first year.

*MACRS for asset 5-year table:

Year .	Depreciation as per MACRS table	Depreciation Amount
1	20%	6500*20/100=1300
2	32%	6500*32/100=2080
3	19.2%	6500*19.2/100=1248
4	11.52%	6500*11.52/100=748.8
5	11.52%	748.8
6.	5.75%	6500*5.75/100=374.40

Please comment in case of any query regarding the solution.