An over-the-road tractor is purchased for $137,530 and placed in service in July 2017. The owner elects to depreciate this 3-year property using MACRS. Make a depreciation schedule showing each year's depreciation, accumulated depreciation, and end-of-year book value for the property Click the icon to view a table of MACRS rates. Complete the following table. Enter the MACRS rate as a decimal and depreciation, accumulated depreciation, and end-of-year book value rounded to the nearest cent. Year 1 2 3 4 MACRS Rate % % % % Annual Depreciation $ $ $ Accumulated Depreciation $ $ $ $ End-of-year book value $ $ $ $
An over-the-road tractor is purchased for $137,530 and placed in service in July 2017. The owner elects to depreciate this 3-year property using MACRS. Make a depreciation schedule showing each year's depreciation, accumulated depreciation, and end-of-year book value for the property Click the icon to view a table of MACRS rates. Complete the following table. Enter the MACRS rate as a decimal and depreciation, accumulated depreciation, and end-of-year book value rounded to the nearest cent. Year 1 2 3 4 MACRS Rate % % % % Annual Depreciation $ $ $ Accumulated Depreciation $ $ $ $ End-of-year book value $ $ $ $
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:An over-the-road tractor is purchased for $137,530 and placed in service in July 2017. The owner elects to depreciate this 3-year property using
MACRS. Make a depreciation schedule showing each year's depreciation, accumulated depreciation, and end-of-year book value for the property.
Click the icon to view a table of MACRS rates.
Complete the following table. Enter the MACRS rate as a decimal and depreciation, accumulated depreciation, and end-of-year book value rounded
to the nearest cent.
Year
1
2
3
4
MACRS
Rate
%
%
%
%
Annual
Depreciation
$
$
$
$
Accumulated
Depreciation
$
$
$
$
End-of-year
book value
$
$
$
$
Transcribed Image Text:Year
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
--~~
18
19
20
21
3-Year
33.33%
44.45
14.81
7.41
Depreciation rate for recovery period
7-Year
14.29%
24.49
17.49
12.49
8.93
8.92
8.93
4.46
5-Year
20.00%
32.00
19.20
11.52
11.52
5.76
.
10-Year
10.00%
18.00
14.40
11.52
9.22
7.37
6.55
6.55
6.56
6.55
3.28
15-Year
5.00%
9.50
8.55
7.70
6.93
6.23
5.90
5.90
5.91
5.90
5.91
5.90
5.91
5.90
5.91
2.95
20-Year
3.750%
7.219
6.677
6.177
5.713
5.285
4.888
4.522
4.462
4.461
4.462
4.461
4.462
4.461
4.462
4.461
4.462
4.461
4.462
4:461
2.231
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