Question
Book valueFind the book value for the asset shown in the accompanying table, assuming that MACRS depreciation is being used Asset Installed cost Recovery period
Book valueFind the book value for the asset shown in the accompanying table, assuming that MACRS depreciation is being used
Asset | Installed cost | Recovery period (years) | Elapsed time since purchase (years) |
A | $832,000 | 5 | 4 |
Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes |
| ||||
Percentage by recovery year* | |||||
Recovery year | 3 years | 5 years | 7 years | 10 years | |
1 | 33% | 20% | 14% | 10% | |
2 | 45% | 32% | 25% | 18% | |
3 | 15% | 19% | 18% | 14% | |
4 | 7% | 12% | 12% | 12% | |
5 | 12% | 9% | 9% | ||
6 | 5% | 9% | 8% | ||
7 | 9% | 7% | |||
8 | 4% | 6% | |||
9 | 6% | ||||
10 | 6% | ||||
11 | 4% | ||||
Totals | 100% | 100% | 100% | 100% | |
*These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year convention. |
The remaining book value is ____?
(Round to the nearest dollar.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started