(Click on the icon located on the top right comer of the data table below in order to copy its contents into a spreadsheet.) 10 years 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 1 33% 20% 14% 10% 2 45% 32% 25% 18% 3 15% 19% 18% 14% 7% 12% 12% 12% 5 12% 9% 9% 6 596 9% 896 7 9% 7% 8 49 6% 9 6% 10 696 11 4% Totals 100% 10096 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 P and sales Troyespuched whey for $28.000 liter MACRS why period in the schedule Arum Ordinary and Wat is the machine? are to be made for the war.00: 354.000.000 16.800 There is Mund te the Cette for each other Sale Cap Takan Demon TARIO Total Price Gain Capital Tas 1s C Taron Catal De Tarn Too 45001 Sale Capital Tax Tee De Bry Total Price 33000 Ca Taxon Cal Duration Tacon Ray Total 3 years 10 years ON 1 Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes I Percentage by recovery year* Recovery year 5 years 7 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 ou 6. Book value and taxes on sale of assets Troy Industries purchased a new machine 3 year(s) ago for $78,000. It is being depreciated under MACRS with a 5-year recovery period using the schedule 1. Assume 40% ordinary and capital gains tax rates a. What is the book value of the machine? b. Calculate the firm's tax liability if it sold the machine for each of the following amounts: 593,600,554,600; $22,620, and $15,800 a. The remaining book value is $ (Round to the nearest dollar.) b. Calculate the firm's tax liability for each case: (Round to the nearest dollar.) Sale Tax on Tax on Total Capital Gain Depreciation Recovery Price Capital Gain Recovery Tax $ 93,600 $ $ $ $ (Round to the nearest dollar.) Sale Capital Tax on Tax on Total Depreciation Recovery Price Gain Capital Gain Recovery Tax $ 54,600 $ $ $ $ (Round to the nearest dollar.) Sale Tax on Capital Gain Depreciation Recovery Tax on Recovery Total Tax Price Capital Gain $ 22,620 $ $ S $ S (Round to the nearest dollar) Sale Tax on Depreciation Tax on Total Capital Gain Capital Gain Recovery Recovery Tax Price 15,800 $ $ $ S $ 1. Data Table th SUR WIE
