2

Agricultural machinery is purchased by Henredon for $450,000. It is expected to last 12 years. Calculate the depreciation deduction and book value for each year using MACRS-GDS allowances. a. What is the MACRS-GDS property class? Provide your answer in year (format example: 3 year)

________

Calculate the depreciation deduction using MACRS-GDS allowances for year 5 = $. (Please provide your response to the nearest integer with no comma or $ sign.)

_______

Calculate the book value using MACRS-GDS allowances for year 5 = $. (Please provide your response to the nearest integer with no comma or $ sign.)

________

Assume the asset is sold during the 5th year of use. Calculate the depreciation deduction using MACRS-GDS allowances for year 5 = $. Remember half-year convention. (Please provide your response to the nearest integer with no comma or $ sign.)

_______