Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes D Percentage by recovery year 7 years 14 % Recovery year ears 33% 5 years 10 years 1 20% 10% 2 45% 32% 25% 18% 15% 19% 18% 14 % 7% 12 % 12% 12% 5 12% 9% 9 % 6 5% 9% 8% 7 9 % 7% 8 4% 6 % 6% 10 6% 4% 11 Totals 100% 100% 100% 100% These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200 % ) depreciation using the half year convention Depreciation A firm is evaluating the acquisition of an asset theat costs $64,600 and requires $4,290 in installation costs. If the firm depreciates the asset under MACRS, using a 5-year recovery period (see table . determine the depreciation charge for each year The annual depreciation expense for year 1 will be $ (Round to the nearest dollar) The annual depreciation expense for year 2 will be S (Round to the nearest dollar) The annual depreciation expense for year 3 will be S (Round to the nearest dollar) The annual depreciation expense for year 4 will be S (Round to the nearest dollar) The annual depreciation expense for year 5 will be S (Round to the nearest dollar.) The annual depreciation expense for year 6 will be S (Round to the nearest dollar)