MACRS depreciation The MACRS depreciation schedule is below. The IRS classifies assets to determine the appropriate schedule and useful life. To determine the annual depreciation expense, multiply the MACRS percentage by the cost of the asset. Annual Depreciation Expense MACRS Table Book Value Example 3. Equipment costs $300,000 and according to the IRS, has a 3-year useful life and should be depreciated using MACRS. The project will end at the end of 3 years and the asset can be sold for $5,000 at that time. The company has a tax rate of 34%. Use the table to calculate the annual depreciation expenses and the asset's book value at the end of each year? What are Dopreciation rate 3-yoar 5-yoar7-year 33.33%| 20.00% | 14.29% 44.45 19.2012.49 24.49 17.49 32.00 14.81 7.41 11.52 11.52 8.93 5.76 8.92 8.93 4.46 the taxes owed on the equipment? What is the after-tax salvage value