Question
Your company bought a new machine for $32,000. The machine falls into the 7-year MACRS category: Year Depreciation rate Year Depreciation rate 1 14.29% 2
Your company bought a new machine for $32,000. The machine falls into the 7-year MACRS category:
Year
Depreciation rate
| Year | Depreciation rate |
| 1 | 14.29% |
| 2 | 24.49% |
| 3 | 17.49% |
| 4 | 12.49% |
| 5 | 8.93% |
| 6 | 8.92% |
| 7 | 8.93% |
| 8 | 4.46% |
What is the allowed amount of depreciation for year 3?
What is the book value at the end of year 5?
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International Corporate Finance
Authors: Mark R. Eaker, Frank J. Fabozzi, Dwight Grant
1st Edition
0030693063, 9780030693069
