Depreciation A firm is evaluating the acquisition of an asset that costs $62,700 and requires $4,230 in installation costs. If the firm depreciates the asset under MACRS, using a five-year recovery period (see table ), determine the depreciation charge for each year. The annual depreciation expense for year 1 will be $ (Round to the nearest dollar.) Data Table x 18% 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% 45% 32% 25% 18% 15% 19% 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 Enter your answer in the answer box and then click Check Answer. parts remaining