Modified Accelerated Cost Recovery System

asset's life. This asset has a five year life. The MACRS rates are shown in the schedule. This example is for an asset with a cost of $$40,000$ and a salvage value of $$4,000.$

MODIFIED ACCELERATED COST RECOVERY SYSTEM

A small delivery truck was purchased on January $1$ at a cost of $$70,000.$ It has an estimated salvage value of $$14,000.$

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.

Open spreadsheet

the rates from the example provided. $($The IRS schedule will spread depreciation over six years.$)$ If an amount is zero, enter $"0".$

Small Delivery Truck

Depreciation Schedule