IE 343 Engineering Economics
Lecture 29: Chapter 7 - Depreciation
and Income Taxes
Instructor: Tian Ni
Nov.4, 2011
IE 343 Fall 2011
1
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Depreciation
Personal
Approach
Method
Property Class
GDS
3-, 5-, 7-,
200% DB method with switch
10-year
to SL when deduction greater
GDS
10- & 20-year
150% DB method with switch
to SL when deduction greater
GDS
Nonresidential &
SL over fixed GDS recovery
Residential Rental
periods
Property
ADS
personal &
SL method over fixed ADS
real property
recovery periods
Calculating Depreciation Under MACRS
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IE 343 Fall 2011