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You are going to have to make a depreciation schedule to be used for tax purposes for the followi...

You are going to have to make a depreciation schedule to be used for tax purposes for the following description: A company purchased a barge costing $671,000 in May 2016 and placed it in service. The total amount of MACRS properties the company placed in service during the last three months of 2016 were 50% of the total amount of all MACRS properties the company placed in service during 2016. What is the second year (2017) book value? (Answer with an integer; Round to the nearest integer)

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Answer #1
Under MACRS Barge falls under 10 year property
Book value 2017 = 4,83,120
Year Adjusted Basis Rate % Depreciation Cumulative Book Value Method
2016 6,71,000 10% 67,100 67,100 6,03,900 DB
2017 6,03,900 18% 1,20,780 1,87,880 4,83,120 DB
2018 4,83,120 14.40% 96,624 2,84,504 3,86,496 DB
2019 3,86,496 11.52% 77,299 3,61,803 3,09,197 DB
2020 3,09,197 9.22% 61,839 4,23,643 2,47,357 DB
2021 2,47,357 7.37% 49,471 4,73,114 1,97,886 DB
2022 1,97,886 6.55% 43,975 5,17,089 1,53,911 SL
2023 1,53,911 6.55% 43,975 5,61,063 1,09,937 SL
2024 1,09,937 6.55% 43,975 6,05,038 65,962 SL
2025 65,962 6.55% 43,975 6,49,013 21,987 SL
2026 21,987 3.28% 21,987 6,71,000 0 SL
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