Question
c10 q5 need help with the last 9 steps Depreciation expense. Richardses' Tree Farm, Inc. has just purchased a new aerial tree trimmer for $95,000.
c10 q5 need help with the last 9 steps
Depreciation expense. Richardses' Tree Farm, Inc. has just purchased a new aerial tree trimmer for $95,000. Calculate the depreciation schedule using a seven-year life (for the property class category of a single-purpose agricultural and horticultural structure from Table 10.3) for both straight-line depreciation and MACRS,
LOADING...Use thehalf-year convention for both methods. Compare the depreciation schedules before and after taxes using a 40% tax rate. What do you notice about the difference between these two methods?
MACRS Fixed Annual Expense Percentages by Recovery Class
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Year | 3-Year | 5-Year | 7-Year | 10-Year |
1 | 33.33% | 20.00% | 14.29% | 10.00% |
2 | 44.45% | 32.00% | 24.49% | 18.00% |
3 | 14.81% | 19.20% | 17.49% | 14.40% |
4 | 7.41% | 11.52% | 12.49% | 11.52% |
5 | 11.52% | 8.93% | 9.22% | |
6 | 5.76% | 8.93% | 7.37% | |
7 | 8.93% | 6.55% | ||
8 | 4.45% | 6.55% | ||
9 | 6.55% | |||
10 | 6.55% | |||
11 | 3.28% |
Using a seven-year life and MACRS depreciation, what is the annual depreciation of the trimmer for year 1?
$enter your response here
(Round to the nearest dollar.)
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