Depreciation rate for 5 year class | Calculation | Result |
1. 20% | 125000 [1/5] | 25000 |
2. 32% |
125000 [32/100] | 40000 |
3. 19.20% | 125000[19.2/100] | 24000 |
4. 11.52% | 125000[11.52/100] | 14400 |
5. 11.52% | 125000[11.52/100] | 14400 |
6. 5.76% | 125000 [5.76/100] | 7200 |
3. A 5-year property class was purchased for $125,000.00. Compute the MACRS depreciation schedule.
3. A 5-year property class was purchased for $125,000.00. Compute the MACRS depreciation schedule.
10 3. A 5-year property class was depreciation schedule. purchased for $125,000.00. Compute the MACRS 5
3. A 5-year property class was purchased for $75,000.00. Compute the MACRS depreciation schedule.
Depreciation on property and the 5 year MACRS class is claimed over a period of six tax years due to the half-year or mid- quarter convention True or false
You purchased a 5-year property class item for $60,000. After using this item for 3 years you sold it for $5,000. What is your gain or loss for tax purposes? Use MACRS depreciation method. 3.
Using MACRS depreciation for a machine costing 90,000 falling the 5 year property class, find the taxable income (not taxes) in years 1 through 6 based on year 1 revenue of 18,000 increasing by 6,000 each year and year 1 expenses of 12,000 increasing by 7,000 each year. The machines is paid for upfront with no loans.
MACRS Depreciation Allowances Property Class 3-Year 5-Year 33.33% 20.00% 44.45 32.00 14.81 19.20 7.41 11.52 7-Year 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46 11.52 5.76 Use the following information to answer the next three questions: Some new equipment under consideration will cost $1,600,000 and will be used for 7 years. Net working capital will experience a one time increase of $778,000 if the equipment is purchased. The equipment is expected to generate annual revenues of $2,300,000 and annual costs...
The installed cost of a new computerized controller was $62,000. Calculate the depreciation schedule by year assuming a recovery period of 5 years and using the appropriate MACRS depreciation percentag given in the table EEB Complete the depreciation schedule for the new computerized controller below: Data Table Recovery Year Depreciation (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Depreciation Recovery Year Rounded Depreciation Percentages by...
Lee's Furniture just purchased $24,000 of fixed assets that are classified as 5-year MACRS property. The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. What is the amount of the depreciation expense for the third year if the firm applies the new bonus method of depreciation? $2,304, $2,507, $4,608, $0, $4,800
You just purchased some equipment that is classified as 5-year property for MACRS. The equipment cost $173,000. What will the book value of this equipment be at the end of 4 years should you decide to resell the equipment at that point in time? Do not include the $ sign, and round it to a whole dollar. MACRS 5-year property Year Rate 1 20.00% 2 32.00% 3 19.20% 4 11.52% 5 11.52% 6 5.76%