Question
Your company bought a new machine for $50,000. The machine falls into the 7-year MACRS category: Year Depreciation rate 1 14.29% 2 24.49% 3 17.49%
Your company bought a new machine for $50,000. The machine falls into the 7-year MACRS category:
| 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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Managerial Finance
Authors: Alan Parkinson
1st Edition
0750618264, 978-0750618267
