Air handling equipment costs $8,000. The air handling equipment is to be depreciated, using the MACRS with a GDS recovery period of seven years. What is the BV of the equipment at the end of (including) year four?

Air handling equipment costs $8,000. The air handling equipment is to be depreciated, using the MACRS with a GDS recovery period of seven years. What is the BV of the equipment at the end of (including) year four?

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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Question

Air handling equipment costs $8,000. The air handling equipment is to be depreciated, using the MACRS with a GDS recovery period of seven years. What is the BV of
the equipment at the end of (including) year four?

GDS Recovery Rates (rk)
Year
7-year Property Class
1
0.1429
2
0.2449
3
0.1749
4
0.1249
0.0893
0.0892
7
0.0893
8.
0.0446

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