Question
An asset is in the MACRS 5-year property class and is being depreciated using the MACRS tables. The tax rate is 30%. The depreciation deduction
An asset is in the MACRS 5-year property class and is being depreciated using the MACRS tables. The tax rate is 30%. The depreciation deduction for this asset in year 2 totaled $12,800. Calculate the depreciation deduction for this asset in year 4. Do not use decimals in your answer. You will need to use the percentages from the MACRS tables posted below
to answer this question.
PERCENTAGES FROM THE MACRS TABLE
|
| MACRS PROPERTY CLASS |
| ||
| Year | 3-Year | 5-Year | 7-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% |
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