Gerdin Inc. just purchased a piece of new equipment at a cost of $230,000. This equipment belongs to the MACRS 3-year depreciation class. The associated percentages for different depreciation classes are presented in the following table. What is the annual depreciation of this equipment in year 3?
year |
3-year |
5-year |
7-year |
1 |
33.33% |
20.00% |
14.29% |
2 |
44.45% |
32.00% |
24.49% |
3 |
14.81% |
19.20% |
17.49% |
4 |
7.41% |
11.52% |
12.49% |
5 |
11.52% |
8.93% |
|
6 |
5.76% |
8.92% |
|
7 |
8.93% |
||
8 |
4.46% |
$44,160
$40,227
$26,496
$34,063
$17,043
Show calculations and be specific please :)
annual depreciation of the equipment in year 3 is equal to
=Cost*Depreciation rate for year 3
=230,000*14.81%
which is equal to
=$34063
Gerdin Inc. just purchased a piece of new equipment at a cost of $230,000. This equipment...
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