Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

screenrec This robot cost you $29,838 (including shipping and installation costs). You planned to use it for at least 11 years, at which point

image text in transcribed

screenrec This robot cost you $29,838 (including shipping and installation costs). You planned to use it for at least 11 years, at which point you estimate you'll be able to sell it for $5,229. But, plans have changed. You've been using this Kuka robot for two years, and you realize you need a larger machine, you're going to sell this robot at the end of only your second year of ownership. As expected, the value of the robot has declined (partially because the technology on newer robots has improved, and partially because of wear and tear on the components). It's actually declined a bit faster than you thought, and you're able to sell the robot for only $8,014. What is the amount of depreciation recapture you'll have to pay when you sell this robot? If there isn't any depreciation recapture enter 0 as your answer. Give your answer in dollars (rounded to the nearest penny). For example, if the answer was $123,456.78 you should enter 123456.78. Property Class 27.5-year property 39-year property Real Property (real estate) Residential rental property (does not include hotels & motels) Nonresidential real property MACRS GDS rates for personal property 6 7 Recovery 3-year 5-year 7-year 10-year 15-year 20-year Year 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.49 18.00 9.50 7.219 3 "14.81 19.20 17.49 14.40 8.55 6.677 4 7.41 *11.52 12.49 11.52 7.70 6.177 5 11.52 8.93 9.22 6.93 5.713 5.76 8.92 7.37 6.23 5.285 8.93 *6.55 *5.90 4.888 8 4.46 6.55 5.90 4.522 9 "Convert to straight-line 6.56 5.91 *4.462 10 6.55 5.90 4.461 3.28 5.91 4.462 In 15-year 12-15 alternate 5.90 & 5.91 5.9x 4.461 2.95 4.461 In 20-year 17-20 alternate 4.461 & 4.462 4.46x 2.231 11 12-15 16 17-20 21 MACRS GDS rates for real property Year Mar Jun Feb Jul Jan May Apr Aug Sep 1 2.461 2.247 2.033 1.819 1.605 1.391 1.177 0.963 0.749 0.535 0.321 0.107 2.564 2-39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 40 1.605 1.819 2.033 2.247 2.431 0.107 0.321 0.535 0.749 0.963 1.177 1.391 Oct Nov Dec

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance for Non Financial Managers

Authors: Pierre Bergeron

7th edition

176530835, 978-0176530839

More Books

Students also viewed these Finance questions

Question

Show that the exact solution of the equation d'v 0

Answered: 1 week ago