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A piece of newly purchased industrial equipment costs $980,000 and is classified as seven-year property under MACRS (MACRS Schedule). Calculate the annual depreciation allowances and end-of-the-year book values for this equipment

A piece of newly purchased industrial equipment costs $980,000 and is classified as seven-year property under MACRS (MACRS Schedule). Calculate the annual depreciation allowances and end-of-the-year book values for this equipment

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Raghubhai 

A piece of newly purchased industrial equipment costs $980,000 and is classified as seven-year property under MACRS (MACRS Schedule). Calculate the annual depreciation allowances and end-of-the-year book values for this equipment. Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Leave no cells blank. Enter "0" when necessary. Beginning Book Value Year Depreciation Allowance Ending Book Value 1 $ 980.000 2 839,958 Mon 3 634,252 4 523,322 5 457,959 6 417,063 BARE7 379.861 8
Transcribed Image Text:A piece of newly purchased industrial equipment costs $980,000 and is classified as seven-year property under MACRS (MACRS Schedule). Calculate the annual depreciation allowances and end-of-the-year book values for this equipment. Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Leave no cells blank. Enter "0" when necessary. Beginning Book Value Year Depreciation Allowance Ending Book Value 1 $ 980.000 2 839,958 Mon 3 634,252 4 523,322 5 457,959 6 417,063 BARE7 379.861 8
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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