Homework Answers
Solution:-
Computer is depreciated under property class of Five year property in Modified Accelerated Cost Recovery System(MACRS).
| Years | Depreciation(%) | Depreciation Charge |
| 1 | 20.00 | $62,062 * 20 / 100 = 12,412.4 |
| 2 | 32.00 | $62,062 * 32 / 100 = 19,859.84 |
| 3 | 19.20 | $62,062 * 19.20 / 100 = 11,915.90 |
| 4 | 11.52 | $62,062 * 11.52 / 100 = 7,149.54 |
| 5 | 11.25 | $62,062 * 11.52 / 100 = 7,149.54 |
| 6 | 5.76 | $62,062 * 5.76 / 100 = 3,574.77 |
According to MACRS the depreciation for year 3 is $ 11,915.90.
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