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%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Question screenshotted below
Transcribed Image Text:### Asset Depreciation Using MACRS
#### Book Value Calculation
- **Asset**: A
- **Installed Cost**: $872,000
- **Recovery Period**: 5 years
- **Elapsed Time Since Purchase**: 2 years
To calculate the remaining book value of asset A, the MACRS (Modified Accelerated Cost Recovery System) depreciation method is used.
#### Data Table
The "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%.
#### Instructions
Calculate the remaining book value using the data from the table above. Enter your answer rounded to the nearest dollar in the provided box.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education