A piece of newly purchased industrial equipment costs $974,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule is shown inTable 10.7. Calculate the annual depreciation allowances and end-of-the-year book values for this equipment

Year Three-Year Five Year Seven year

1 33.33% 20% 14.29%

2 44.45 32 24.49

3 14.81 19.20 17.49

4 7.41 11.52 12.49

5 11.52 8.93

6 5.76 8.92

7 8.93

8 4.46