The MACRS depreciation allowances on 3-year property are 33.33 percent, 44.44 percent, 14.82 percent, and 7.41 percent, respectively. What is the amount of the depreciation in year 2 for a 3-year asset with an initial cost of $89,000?
A. |
$39,551.60 |
|
B. |
$26,369.05 |
|
C. |
$35,414.14 |
|
D. |
$33,333.33 |
Amount of depreciation in year 2=$89000*depreciation rate for year 2
=$89000*44.44%
Which is equal to
=$39551.60(A).
The MACRS depreciation allowances on 3-year property are 33.33 percent, 44.44 percent, 14.82 percent, and 7.41...
The Galley purchased some 3-year MACRS property two years ago at a cost of $19,800. The MACRS rates are 33.33 percent, 44.44 percent, 14.82 percent, and 7.41 percent. The firm no longer uses this property so is selling it today (assume it is fully depreciated) at a price of $13,500. What is the amount of the aftertax profit on the sale? Assume the firm applies bonus depreciation and has a tax rate of 21 percent. Select one: a. $10,665.00 b....
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...
Year 0 Year 1 Year 2 Year 3 MACRS Depreciation Rate 33.33% 44.45% 14.81% 7.41% A firm is considering the purchase of a new machine for $325,000. The firm is unsure if it should use the 3-Year MACRS schedule or straight-line depreciation over three years. What is the difference in the book value after three years if the firm uses MACRS instead of straight-line depreciation? Group of answer choices $300,918 $48,166 $0 $24,083
McCanless Co. recently purchased an asset for $2,250,000 that will be used in a 3-year project. The asset is in the 4-year MACRS class. The depreciation percentage each year is 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. What is the amount of depreciation in Year 2? a) $749,925 b) $333,225 c) $750,000 d) $1,000,125 e) $166,725
5. A proposed cost-saving device has an installed cost of $540,000. The device will be used in a five-year project but is classified as three-year MACRS property for tax purposes. The required initial net working capital investment is $40,000, the marginal tax rate is 35%, and the project discount rate is 12 percent. The device has an estimated year 5 salvage value of $60,000. What level of pretax cost saving do we require for this pro to be profitable? (3-year...
Year OVOU AON Property Class Three-Year Five-Year 33.33% 20.00% 44.45 32.00 14.81 19.20 7.41 11.52 11.52 5.76 Seven-Year 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46 A piece of newly purchased industrial equipment costs $979,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule is shown in Table 10.7. Calculate the annual depreciation allowances and end-of-the-year book values fo this equipment. (Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate...
McCanless Co. recently purchased an asset for $1,850,000 that will be used in a 3-year project. The asset is in the 4-year MACRS class. The depreciation percentage each year is 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. What is the amount of depreciation in Year 2?
McCanless Co. recently purchased an asset for $2,550,000 that will be used in a 3-year project. The asset is in the 4-year MACRS class. The depreciation percentage each year is 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. What is the amount of depreciation in Year 2?
TWIZZ Company purchased a 3-year MACRS property for $12486 2 years ago. What is the current book value of this equipment? The MACRS allowance percentages are as follows, starting with year one: 33.33, 44.45, 14.81, and 7.41 percent.
Exhibit 8.3 MACRS Accelerated Depreciation for Personal Property Assuming Half- Year Convention (Percentage Rates) For Property Placed in Service after December 31, 1986 Recovery Year 3-Year (200% DB) 5-Year (200% DB) 7-Year (200% DB) 10-Year (200% DB) 15-Year (150% DB) 20-Year (150% DB) 33.33 14.29 10.00 5.00 3.750 20.00 32.00 44.45 24.49 18.00 9.50 7.219 14.81 * 19.20 17.49 14.40 8.55 6.677 7.41 11.52 * 12.49 11.52 7.70 6.177 11.52 8.93 * 9.22 6.93 5.713 5.76 8.92 7.37 6.23 5.285...