A firm is evaluating the acquisition of an asset that costs $68,200 and requires $3,930 in installation costs. If the firm depreciates the asset under MACRS, using a five year recovery period, see table attached:Determine the depreciation charge for each year. on the icon here in order to copy the contents of the data table below into a spreadsheet.)unded Depreciation Percentages by Recovery Year Using MACRS forst Four Property ClassesPercentage by recovery year*Recovery year3 years5 years7 years10 years133%20%14%10%45%32%25%18%15%19%18%14%7%12%12%12%12%9%9%5%9%8%9%7%4%6%6%6%104%11100%100%100%100%Totals*These percentages have been rounded to the nearest whole percent to simplify calculations whileretaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actualunrounded percentages or directly apply double-declining balance (200%) depreciation using the half-yearNextconvontion76°2 3 4 5 67 8 9 은

The annual depreciation is computed as MACRS rate multiplied by asset cost.

A firm is evaluating the acquisition of an asset that costs $68,200 and requires $3,930 in installation costs. If the firm depreciates the asset under MACRS, using a five year recovery period, see table attached: Determine the depreciation charge for each year.

A firm is evaluating the acquisition of an asset that costs $68,200 and requires $3,930 in installation costs. If the firm depreciates the asset under MACRS, using a five year recovery period, see table attached: Determine the depreciation charge for each year.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 7BCRQ

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Question

Determine the depreciation charge for each year.

on the icon here in order to copy the contents of the data table below into a spreadsheet.)
unded Depreciation Percentages by Recovery Year Using MACRS for
st Four Property Classes
Percentage by recovery year*
Recovery year
3 years
5 years
7 years
10 years
1
33%
20%
14%
10%
45%
32%
25%
18%
15%
19%
18%
14%
7%
12%
12%
12%
12%
9%
9%
5%
9%
8%
9%
7%
4%
6%
6%
6%
10
4%
11
100%
100%
100%
100%
Totals
*These percentages have been rounded to the nearest whole percent to simplify calculations while
retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual
unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year
Next
convontion
76°
2 3 4 5 67 8 9 은

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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