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Consider the following MACRS Table for a 5-year asset. If an asset is purchased for $100,000;...

Consider the following MACRS Table for a 5-year asset. If an asset is purchased for $100,000; with a shipping and istallation cost of $10,000 and an expected salvage value of $20,000; what is the depreciation expense in the second year? I need to know the steps with a BA ll plus calculator if needed.

Year

Exp. Ratio

1

20.00

2

32.00

3

19.20

4

11.52

5

11.52

6

5.76

$ 35,200.00

$ 32,000.00

$ 28,800.00

$ 25,600.00
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Answer #1

Depreciation in Year 2:

= Asset cost×Depreciation rate in year 2

= $110,000×32%

= $35,200

Hence, correct option is $35,200

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