Question
Gerdin Inc. just purchased a piece of new equipment at a cost of $230,000. This equipment belongs to the MACRS 7-year depreciation class. The associated
Gerdin Inc. just purchased a piece of new equipment at a cost of $230,000. This equipment belongs to the MACRS 7-year depreciation class. The associated percentages for different depreciation classes are presented in the following table. What is the book value of the equipment at the end of year 4?
| year | 3-year | 5-year | 7-year |
| 1 | 33.33% | 20.00% | 14.29% |
| 2 | 44.45% | 32.00% | 24.49% |
| 3 | 14.81% | 19.20% | 17.49% |
| 4 | 7.41% | 11.52% | 12.49% |
| 5 |
| 11.52% | 8.93% |
| 6 |
| 5.76% | 8.92% |
| 7 |
|
| 8.93% |
| 8 |
|
| 4.46% |
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Using Microcomputers In Managerial Accounting
Authors: George Hildebrand
1st Edition
0938188275, 978-0938188278
