Use Excel to check the values for a 7-year MACRS. Create a spreadsheet in Excel with the column headings Year, DDB%, Sum DDB%, St.Line%, MACRS%, Sum MACRS%, and Method used (1/2 y DDB, DDB, SL, remainder).

Enter the appropriate years and formulas in the cells in order to calculate the Depreciation Allowance fo MACRS with a 7-year recovery period, to two-figures after the decimal point. For each year, in the last column type in which method was used that year. Note that there's a slight difference from the official IRS values for MACRS, presumably because a different method of rounding off was used and year 6 was decreased so the total would be 100%.

Perform the same calculations as above but with an 8-year recovery period. use Excel to calculate the book value of $1,000,000 investment versus time using MACRS with an 8-year recovery period. Plot the book value versus time and indicate when the switch from double-declining balance to straight line is made.

DDB%= the percent of the investment that you'd depreciate each year using the double-declining balance method

St.Line%= the amount you'd depreciate if you switched to straight-line depreciation that year

MACRS%= the percent of the investment you'd actually be allowed to depreciate that year

Sum MACRS%= the total amount by which the book value would be reduced by depreciation by the end of that year (must equal 100% by the end of the recovery period)

link to IRS depreciation schedules for MACRS http://www.irs.gov/publications/p946/ar02.html

Screenshots of the excels and graphs would be greatly appreciated as well as the calculations used!