Part $2$ of $11$

Points: $0$ of $1$

Depreciation expense. Richardses' Tree Farm, Inc. has just purchased a new aerial tree trimmer for $$95,000.$ Calculate the depreciation schedule using a seven$-$year life $($ property class category of a single$-$purpose agricultural and horticultural structure from Table $10\mathrm{.}3)$ for both straight$-$line depreciation and MACRS, $.$ Use the half$-$year convention for both methods. Compare the depreciation schedules before and after taxes using a $40\%$ tax rate. What do you notice about the difference between these two methods?

Using a seven$-$year life, straight$-$line depreciation, and the half$-$year convention for the first and last years, what is the annual depreciation of the trimmer?

$$13571\mathrm{.}43($Round to the nearest dollar.$)$

Using a seven$-$year life, straight$-$line depreciation, and the half$-$year convention for the first and last years, what is the depreciation for the first and last years?

$($Round to the paractallar$)$

Data table

MACRS Fixed Annual Expense Percentages by Recovery Class Click on this icon to download the data from this table

$\backslash$table$[[$Year$,3-$Year,$5-$Year,$7-$Year,$10-$Year$],[1,33\mathrm{.}33\%,20\mathrm{.}00\%,14\mathrm{.}29\%,10\mathrm{.}00\%$