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
rate positively ..
Cost of machine = | 325000 | |
Straight line | ||
Straight line depreciation = | $ 108,333.33 | |
325000/3 | ||
Book value after 3 year = | 0 | |
325000-10833.33*3 | ||
MACRS | ||
Book value after 3 year = | 24083 | |
325000*7.41% | ||
Difference = | 24083 | |
24083-0= | ||
answer = | $ 24,083 | |
Year 0 Year 1 Year 2 Year 3 MACRS Depreciation Rate 33.33% 44.45% 14.81% 7.41% A...
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...
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...
Complete the (4) depreciation tables/caclulations below using the following MACRS table: YEAR 3-YEAR 33.33% 44.45% 14.81% 7.41% 5-YEAR 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% 7-YEAR 14.29% 24.49% 17.49% 12.49% 8.93% 8.92% 8.93% 4.46% 100.00% 100.00% 100.00% 1. During 2012, Axel Corporation purchases new machinery (5-year property) for $200,000 and decides not to take a Section 179 deduction. a. Computer maximum tax depreciation for the machinery for 2012-2017. Year Depreciation calculation Dep. Exp. 2012 2012 2013 2014 2015 2016 2017 Total...
Ch 10 Homework Table 10.7,4PG 458 Property Class Three-Year 33.33% 44.45 14.81 7.41 Year Five-Year 20.00% 32.00 19.20 1.52 11.52 5.76 Seven-Year 14.29% 17.49 12.49 8.93 8.92 8.93
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.
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
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