DepreciationA firm is evaluating the acquisition of an asset that costs

$67,800

and requires

$3,850

in installation costs. If the firm depreciates the asset under MACRS, using a 5-year recovery period (see table

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), determine the depreciation charge for each year.

Question content area bottom

Part 1

The annual depreciation expense for year 1 will be

$enter your response here.

(Round to the nearest dollar.)

Part 2

The annual depreciation expense for year 2 will be

$enter your response here.

(Round to the nearest dollar.)

Part 3

The annual depreciation expense for year 3 will be

$enter your response here.

(Round to the nearest dollar.)

Part 4

The annual depreciation expense for year 4 will be

$enter your response here.

(Round to the nearest dollar.)

Part 5

The annual depreciation expense for year 5 will be

$enter your response here.

(Round to the nearest dollar.)

Part 6

The annual depreciation expense for year 6 will be

$enter your response here.

(Round to the nearest dollar.)

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% 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%