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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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