Question
You purchase equipment for $198,969. The companys marginal tax rate is 21%. Three-, five- and seven-year MACRS schedules: Year 3-Year 5-Year 7-Year 1 33.33% 20.00%
You purchase equipment for $198,969. The companys marginal tax rate is 21%.
Three-, five- and seven-year MACRS schedules:
| Year | 3-Year | 5-Year | 7-Year |
| 1 | 33.33% | 20.00% | 14.29% |
| 2 | 44.45% | 32.00% | 24.49% |
| 3 | 14.81% | 19.20% | 17.49% |
| 4 | 7.41% | 11.52% | 12.49% |
| 5 | 11.52% | 8.93% | |
| 6 | 5.76% | 8.92% | |
| 7 | 8.93% | ||
| 8 | 4.46% |
Use the five-year MACRS depreciation schedule.
Calculate the amount of depreciation in year 3.
Round your answer to 2 decimal places (e.g. 125.74632 = 125.75).
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Airline Finance
Authors: Peter S. Morrell
5th Edition
0367481383, 9780367481384
