Asset Description (Personal and Real Property) Special manufacturing and handling devices, tractors, racehorses Computers and peripherals, oil and gas drilling equipment, construction assets, autos, trucks, buses, cargo containers, some manufacturing equipment Office furniture; some manufacturing equipment; railroad cars, engines, tracks; agricultural machin- GDS 3 5 7 MACRS n Value, Years ADS Range 3-5 6-9.5 10-15
Asset Description (Personal and Real Property) Special manufacturing and handling devices, tractors, racehorses Computers and peripherals, oil and gas drilling equipment, construction assets, autos, trucks, buses, cargo containers, some manufacturing equipment Office furniture; some manufacturing equipment; railroad cars, engines, tracks; agricultural machin- GDS 3 5 7 MACRS n Value, Years ADS Range 3-5 6-9.5 10-15
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
6. Answer the given question. Do not round off answers while solving, instead just the final answer will be rounded off to two decimal places.
![Asset Description (Personal and Real Property)
Special manufacturing and handling devices, tractors,
racehorses
Computers and peripherals, oil and gas drilling
equipment, construction assets, autos, trucks, buses,
cargo containers, some manufacturing equipment
Office furniture; some manufacturing equipment;
railroad cars, engines, tracks; agricultural machin-
ery; petroleum and natural gas equipment; all
property not in another class
Equipment for water transportation, petroleum refin-
ing, agriculture product processing, durable-goods
manufacturing, shipbuilding
Land improvements, docks, roads, drainage, bridges,
landscaping, pipelines, nuclear power production
equipment, telephone distribution
Municipal sewers, farm buildings, telephone switch-
ing buildings, power production equipment (steam
and hydraulic), water utilities
Residential rental property (house, mobile home)
Nonresidential real property attached to the land, but
not the land itself
The depreciation,(in $)
Round to the nearest two (2) decimal places
Add your answer
GDS
3
5
7
10
15
20
27.5
39
MACRS
n Value, Years
ADS Range
3-5
6-9.5
10-15
15-19
20-24
25-50
40
40](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdbc2ca69-a20a-4b4d-9994-19a36a2ea541%2Faeb44f2e-8e37-4687-a492-f2e98c0800fb%2Fqbyh9l_processed.png&w=3840&q=75)
Transcribed Image Text:Asset Description (Personal and Real Property)
Special manufacturing and handling devices, tractors,
racehorses
Computers and peripherals, oil and gas drilling
equipment, construction assets, autos, trucks, buses,
cargo containers, some manufacturing equipment
Office furniture; some manufacturing equipment;
railroad cars, engines, tracks; agricultural machin-
ery; petroleum and natural gas equipment; all
property not in another class
Equipment for water transportation, petroleum refin-
ing, agriculture product processing, durable-goods
manufacturing, shipbuilding
Land improvements, docks, roads, drainage, bridges,
landscaping, pipelines, nuclear power production
equipment, telephone distribution
Municipal sewers, farm buildings, telephone switch-
ing buildings, power production equipment (steam
and hydraulic), water utilities
Residential rental property (house, mobile home)
Nonresidential real property attached to the land, but
not the land itself
The depreciation,(in $)
Round to the nearest two (2) decimal places
Add your answer
GDS
3
5
7
10
15
20
27.5
39
MACRS
n Value, Years
ADS Range
3-5
6-9.5
10-15
15-19
20-24
25-50
40
40
![Del
Norte Brick Co. is located near the intersection of Texas, New Mexico, and Mexico. Improved access to the company's property is
via a small bridge across the Rio Grande. The cost of the bridge was $620,000. Determine the depreciation and book value for year 3
according to the MACRS (Modified Accelerated Cost Recovery System) method.
Year
12345
6
7
8
9
10
M2345
12
13
14
15
16
17-20
21
n=3
33.33
44.45
14.81
7.41
Depreciation Rate (%) for Each MACRS Recovery Period in Years
n=5
n=7
n=15
20.00
32.00
19.20
11.52
11.52
5.76
14.29
24.49
17.49
12.49
8.93
8.92
8.93
4.46
n=10
10.00
18.00
14.40
11.52
9.22
7.37
6.55
6.55
6.56
6.55
3.28
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
n = 20
3.75
7.22
6.68
6.18
5.71
5.29
4.89
4.52
4.46
4.46
4.46
4.46
4.46
4.46
4.46
4.46
4.46
2.23](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdbc2ca69-a20a-4b4d-9994-19a36a2ea541%2Faeb44f2e-8e37-4687-a492-f2e98c0800fb%2Fhsyxenl_processed.png&w=3840&q=75)
Transcribed Image Text:Del
Norte Brick Co. is located near the intersection of Texas, New Mexico, and Mexico. Improved access to the company's property is
via a small bridge across the Rio Grande. The cost of the bridge was $620,000. Determine the depreciation and book value for year 3
according to the MACRS (Modified Accelerated Cost Recovery System) method.
Year
12345
6
7
8
9
10
M2345
12
13
14
15
16
17-20
21
n=3
33.33
44.45
14.81
7.41
Depreciation Rate (%) for Each MACRS Recovery Period in Years
n=5
n=7
n=15
20.00
32.00
19.20
11.52
11.52
5.76
14.29
24.49
17.49
12.49
8.93
8.92
8.93
4.46
n=10
10.00
18.00
14.40
11.52
9.22
7.37
6.55
6.55
6.56
6.55
3.28
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
n = 20
3.75
7.22
6.68
6.18
5.71
5.29
4.89
4.52
4.46
4.46
4.46
4.46
4.46
4.46
4.46
4.46
4.46
2.23
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