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Amanufacturer of aerospace products purchased three flexible assembly cells for $540,000 each. Delivery and insurance charges were $38,000, and installation of the cells cost another
Amanufacturer of aerospace products purchased three flexible assembly cells for $540,000 each. Delivery and insurance charges were $38,000, and installation of the cells cost another $47,000. a. Determine the cost basis of the three cells. b. What is the class life of the cells? c. What is the MACRS depreciation in year six? d. If the cells are sold to another company for $110,000 each at the end of year six, how much is the recaptured depreciation? Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (x). a. The cost basis of the three cells is $thousand. (Round to the nearest whole number.)
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