Depreciation In early 2019, Sosa Enterprises purchased a new machine for $12,400 to make cork stoppers for wine bottles. The machine has a 3-year recovery period and is expected to have a salvage value of $1,950. Develop a depreciation schedule for this asset using the MACRS depreciation percentages in the table. Complete the depreciation schedule for the asset below: (Round the percentage to the nearest integer and the depreciation to the nearest dollar.) Depreciation Schedule Cost Percentage Depreciation Year (1) (2) (1) (2) 1 $12,400 % 10 years 7% 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% 4 12% 12% 12% 5 12% 9% 9% 6 5% 9% 8% 7 9% 7% 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. 8