Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26). It has a cost basis of $180,000. With additional options costing $15,000, the cost basis for depreciation purposes is $195,000. Ite MV at the end of six years is estimated as $42,000. Assume it will be depreciated under the GDS. a. What is the cumulative depreciation through the end of year two? b. What is the MACRS depreciation in the second year? c. What is the BV at the end of year one? Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates in). a. The cumulative depreciation through the end of year two is $ . (Round to the nearest dollar) i More Info More Info MACRS Class Lives and Recowery Periods Recovery Periods GDS ADS Class Life Asset Class 05.11 00.12 00.22 00 23 00.241 00.242 00.28 01.1 35 GDS Recovery Rates (r) for the Six Personal Property Classes Recovery Period (and Property Class) 3-year -vour 7-year 10-year 15 year 0.3333 0.2000 0.1429 0 1000 0.0500 0.44-15 0.3200 0.2449 0.1800 0.0950 0.1481 0.1920 0.1749 0.1440 D.0855 0.0741 0.1152 0.1249 0.1152 0.0770 0.1152 0.0893 0.0922 0.0693 0.0576 0.0892 0.0737 0.0623 0.0893 0.0656 0.0590 0.0446 0.0656 0.0590 0.0656 0.0591 0.0655 0.0590 0.0328 0.0591 0.0590 0.0591 0.0590 0.0591 0.0295 20 year 00375 0.0722 0.0668 0.0618 0.0571 0.0528 0.0489 0.0452 10.0 Descriptions of Assets Office furniture and equipment Information systems, including computers Automobiles, taxis Buses Light general purpose trucks Heavy general purpose trucks Tractor units for use over the road Agriculture Mining Production of pintrokum and natural gas Petroleum refining Construction Manufacture of carpets Manufacture of wood products and furniture Manufacture of chemicals and allied products Manufacture of rubber products Manufacture of cement Manufacture of fabricated metal products Manufacture of electronic components, producls, and systems Manufacture of motor vehicles Manufacture of aerospace products Telephone central office equipment Electric utility steam production plant Gas utility distribution facilities Recreation 132 133 15.0 22.3 24.4 28.0 30.1 322 34.0 38.0 37.11 372 48.12 88uOV 0.0447 0.0446 0.0446 0.0446 0.0446 0.0446 0.0146 0.0446 0.0446 00446 0.0446 00223 19 20 49 13 4921 79.0 These rates are determined by applying the 200% DB method with switchaver to the SL method to the recovery period with the half-year convention applied to the first and last years. Rales for each period must sur to 1.000 K Answer Your company has purchased a large new trucktractor for over-the-road use (asset class 00.26). It has a cost basis of $180,000. With additional options costing $15,000, the cost basis for depreciation purposes is $195,000. Ite MV at the end of six years is estimated as $42,000. Assume it will be depreciated under the GDS. a. What is the cumulative depreciation through the end of year two? b. What is the MACRS depreciation in the second year? c. What is the BV at the end of year one? Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates in). a. The cumulative depreciation through the end of year two is $ . (Round to the nearest dollar) i More Info More Info MACRS Class Lives and Recowery Periods Recovery Periods GDS ADS Class Life Asset Class 05.11 00.12 00.22 00 23 00.241 00.242 00.28 01.1 35 GDS Recovery Rates (r) for the Six Personal Property Classes Recovery Period (and Property Class) 3-year -vour 7-year 10-year 15 year 0.3333 0.2000 0.1429 0 1000 0.0500 0.44-15 0.3200 0.2449 0.1800 0.0950 0.1481 0.1920 0.1749 0.1440 D.0855 0.0741 0.1152 0.1249 0.1152 0.0770 0.1152 0.0893 0.0922 0.0693 0.0576 0.0892 0.0737 0.0623 0.0893 0.0656 0.0590 0.0446 0.0656 0.0590 0.0656 0.0591 0.0655 0.0590 0.0328 0.0591 0.0590 0.0591 0.0590 0.0591 0.0295 20 year 00375 0.0722 0.0668 0.0618 0.0571 0.0528 0.0489 0.0452 10.0 Descriptions of Assets Office furniture and equipment Information systems, including computers Automobiles, taxis Buses Light general purpose trucks Heavy general purpose trucks Tractor units for use over the road Agriculture Mining Production of pintrokum and natural gas Petroleum refining Construction Manufacture of carpets Manufacture of wood products and furniture Manufacture of chemicals and allied products Manufacture of rubber products Manufacture of cement Manufacture of fabricated metal products Manufacture of electronic components, producls, and systems Manufacture of motor vehicles Manufacture of aerospace products Telephone central office equipment Electric utility steam production plant Gas utility distribution facilities Recreation 132 133 15.0 22.3 24.4 28.0 30.1 322 34.0 38.0 37.11 372 48.12 88uOV 0.0447 0.0446 0.0446 0.0446 0.0446 0.0446 0.0146 0.0446 0.0446 00446 0.0446 00223 19 20 49 13 4921 79.0 These rates are determined by applying the 200% DB method with switchaver to the SL method to the recovery period with the half-year convention applied to the first and last years. Rales for each period must sur to 1.000 K