3. A 5-year property class was purchased for $75,000.00. Compute the MACRS depreciation schedule.

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Answer 1

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Year	Value in the beginning of year $	MACRS Depreciation % ( on original value)	Depreciation amount $	Value after depreciation $
1	75000	20%	15000	60000
2	60000	32%	24000	36000
3	36000	19.20%	14400	21600
4	21600	11.52%	8640	12960
5	12960	11.52%	8640	4320
6	4320	5.76%	4320	0

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3. A 5-year property class was purchased for $75,000.00. Compute the MACRS depreciation schedule.

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