A firm is evaluating the acquisition of an asset that costs $61,200 and requires $3,570 in installation costs. If the firm depreciates the asset under MACRS, using a 5-year recovery period

determine the depreciation charge for each year.

Rounded Depreciation Percentages by Recovery Year Using MACRS for
First Four Property Classes
	Percentage by recovery year*
Recovery year	3 years	5 years	7 years	10 years
1	33%	20%	14%	10%
2	45%	32%	25%	18%
3	15%	19%	18%	14%
4	7%	12%	12%	12%
5		12%	9%	9%
6		5%	9%	8%
7			9%	7%
8			4%	6%
9				6%
10				6%
11				4%
Totals	100%	100%	100%	100%