Question screenshotted below ### Asset Depreciation Using MACRS#### Book Value Calculation- **Asset**: A- **Installed Cost**: $872,000- **Recovery Period**: 5 years- **Elapsed Time Since Purchase**: 2 yearsTo calculate the remaining book value of asset A, the MACRS (Modified Accelerated Cost Recovery System) depreciation method is used.#### Data TableThe "Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes" table provides the percentage depreciation for different recovery periods.##### Percentage by Recovery Year| Recovery Year | 3 years | 5 years | 7 years | 10 years ||---------------|---------|---------|---------|----------|| **1** | 33% | 20% | 14% | 10% || **2** | 45% | 32% | 25% | 18% || **3** | 15% | 19% | 18% | 14% || **4** | 7% | 12% | 12% | 12% || **5** | | 12% | 9% | 9% || **6** | | 5% | 9% | 9% || **7** | | | 9% | 9% || **8** | | | 4% | 9% || **9** | | | | 9% || **10** | | | | 6% || **11** | | | | 6% || **12** | | | | 4% |- **Total**: Each column adds up to 100%.#### InstructionsCalculate the remaining book value using the data from the table above. Enter your answer rounded to the nearest dollar in the provided box.

Introduction: Depreciation means a reduction in the value of an asset due to passage of time,…

Book value Find the book value for the asset shown in the accompanying table, assuming that MACRS depreciation is being used E Recovery period (years) Elapsed time since purchase (years) Data Table Asset A Installed cost 5872.000 5 2 The remaining book value is S. (Round to the nearest dollar.) (Click on the icon located on the top-right corner of the data table below in order to copy its spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year* 7 years Recovery year 3 years 5 years 1 33% 20% 14% 2 45% 32% 25% 3 15% 19% 18% 4 7% 12% 12% 12% 9%

Book value Find the book value for the asset shown in the accompanying table, assuming that MACRS depreciation is being used E Recovery period (years) Elapsed time since purchase (years) Data Table Asset A Installed cost 5872.000 5 2 The remaining book value is S. (Round to the nearest dollar.) (Click on the icon located on the top-right corner of the data table below in order to copy its spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year* 7 years Recovery year 3 years 5 years 1 33% 20% 14% 2 45% 32% 25% 3 15% 19% 18% 4 7% 12% 12% 12% 9%

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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