1. Assume you purchased herd of 20 pigs for breeding and you pay $500 per pig for them total of $10,000. You bought them on March 1, 2017. Assume there is no loss of pigs and the salvage value is $150 per pig ($3,000 total). The useful life is 5 years. Use the MACRS 3-year schedule as shown in the PowerPoint (this is different from the useful life).

Using the information above and any documents provided to you calculate the Previous Year Depreciation and the Beginning of Year Book Value for the years and the depreciation method in the table below. Place your answers in the table.

	Straight Line		150% Declining Balance		Sum of the Years Digits		MACRS
Year	Previous year Depreciation	Beginning of year Book Value	Previous year Depreciation	Beginning of year Book Value	Previous year Depreciation	Beginning of year Book Value	Previous year Depreciation	Beginning of year Book Value
3/1/2017	---	$10,000.00	---	$10,000.00	---	$10,000.00	---	$10,000.00
12/31/2017	$1,166.67	$8,833.33	$2,500.00	$7,500.00	$1,457.75	$8,542.25	$3,333.00	$6,667.00
12/31/2018	$1,400.00	$7,433.33	$2,250.00	$5,250.00	$1,541.75	$7,000.50	$4,445.00	$2,222.00
12/31/2019	$1,400.00	$6,033.33	$1,575.00	$3,675.00	$1,291.75	$5,708.75	$1,481.00	$741.00
12/31/2020	$1,400.00	$4,633.33	$675.00	$3,000.00	$1,041.75	$4,667.00	$741.00	$0.00
12/31/2021	$1,400.00	$3,233.33			$791.75	$3,875.25
12/31/2022	$233.33	$3,000.00			$541.75	$3,333.50
12/31/2023					$41.75	$3,291.75
12/31/2024					$291.75	$3,000.00

MACRS

Recovery Percentages

Recovery Year

Recovery Year 3 year class 5 year class 7 year class

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% 8.92%

5. 11.53% 8.93%

6. 5.76% 4.46%