A piece of newly purchased industrial equipment costs $983,000 and is classified a seven-year property under MACRS. The MACRS depreciation schedule is shown in table below. Calculate the annual depreciation allowances and the end-of -the year book values for this equipment.

year three-year five-year Seven-year

1 33.33% 20.00% 14.29%

2 44.45 32.00 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

fill in cells:

year beginning book value depreciation Ending book value

1

2

3

4

5

6

7

8