10_06_SOKZAI - Ending BV = 111,400 37,129.62 = 74,270.38...

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Your Code: SOKZAI Chapter: 10 Problem: 6 Component I: A newly purchase equipment costs $111,400 and is classified as three year property under MACRS. Calculate the annual depreciation allowances and end-of-the-year book value each year for this equipment. Component II: 0------------1---------------2--------------3--------------4 MACRS 33.33% 44.45% 14.81% 7.41% Component III: Year One: Depreciation = 111,400 x 33.33% = 37,129.62
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Unformatted text preview: Ending BV = 111,400 37,129.62 = 74,270.38 Year Two: Depreciation = 111,400 x 44.45% = 49,517.3 Ending BV = 74,270.38 - 49,517.3 = 24,753.08 Year Three: Depreciation = 111,400 x 14.81% = 16,498.34 Ending BV = 24,753.08 - 16,498.34 = 8,257.74 Year Four: Depreciation = 111,400 x 7.41% = 8,257.74 Ending BV = 8,257.74 - 8,257.74 = 0...
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This note was uploaded on 05/26/2011 for the course FINA 3000 taught by Professor Laplante during the Spring '08 term at University of Georgia Athens.

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