Question
Sheffield Corporation purchased an asset at a cost of $58,750 on March 1, 2020. The asset has a useful life of 8 years and a
Sheffield Corporation purchased an asset at a cost of $58,750 on March 1, 2020. The asset has a useful life of 8 years and a salvage value of $4,700. For tax purposes, the MACRS class life is 5 years.
MACRS Depreciation Rates by Class of Property | ||||||||||||
Recovery Year | 3-year (200% DB) | 5-year (200% DB) | 7-year (200% DB) | 10-year (200% DB) | 15-year (150% DB) | 20-year (150% DB) | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
1 | 33.33 | 20.00 | 14.29 | 10.00 | 5.00 | 3.750 | ||||||
2 | 44.45 | 32.00 | 24.29 | 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 | |||||||
6 | 5.76 | 8.92 | 7.37 | 6.23 | 5.285 | |||||||
7 | 8.93 | 6.55* | 5.90* | 4.888 | ||||||||
8 | 4.46 | 6.55 | 5.90 | 4.522 | ||||||||
9 | 6.56 | 5.91 | 4.462* | |||||||||
10 | 6.55 | 5.90 | 4.461 | |||||||||
11 | 3.28 | 5.91 | 4.462 | |||||||||
12 | 5.90 | 4.461 | ||||||||||
13 | 5.91 | 4.462 | ||||||||||
14 | 5.90 | 4.461 | ||||||||||
15 | 5.91 | 4.462 | ||||||||||
16 | 2.95 | 4.461 | ||||||||||
17 | 4.462 | |||||||||||
18 | 4.461 | |||||||||||
19 | 4.462 | |||||||||||
20 | 4.461 | |||||||||||
21 | 2.231 | |||||||||||
*Switchover to straight-line depreciation. |
Compute tax depreciation for each year 20202025. (Round answers to 0 decimal places, e.g. 45,892.)
Tax depreciation for 2020 | $enter a dollar amount rounded to 0 decimal places | |
---|---|---|
Tax depreciation for 2021 | $enter a dollar amount rounded to 0 decimal places | |
Tax depreciation for 2022 | $enter a dollar amount rounded to 0 decimal places | |
Tax depreciation for 2023 | $enter a dollar amount rounded to 0 decimal places | |
Tax depreciation for 2024 | $enter a dollar amount rounded to 0 decimal places | |
Tax depreciation for 2025 | $enter a dollar amount rounded to 0 decimal places |
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