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Book value Find the book value for the asset shown in the accompanying table, assuming that MACRS depreciation is being used Recovery period (years) 5 Elapsed time since purchase (years) 3 Asset Installed cost A $887,000 The remaining book value is $. (Round to the nearest dollar.) Data table

Book value Find the book value for the asset shown in the accompanying table, assuming that MACRS depreciation is being used Recovery period (years) 5 Elapsed time since purchase (years) 3 Asset Installed cost A $887,000 The remaining book value is $. (Round to the nearest dollar.) Data table

Essentials Of Investments
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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Book value Find the book value for the asset shown in the accompanying table, assuming that MACRS depreciation is being used Recovery period (years) 5 Elapsed time since purchase (years) 3 Asset A Installed cost $887,000 The remaining book value is $. (Round to the nearest dollar.) Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Recovery year 1 2 3 4 10 years 10% 18% 14% 12% 9% 8% 7% 6% 6% 6% 4% 100% 100% 100% 100% *These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year convention. 5 6 7 8 9 10 11 Totals 3 years 33% 45% Percentage by recovery year* 5 years 20% 15% 7% 32% 19% 12% 12% 5% 7 years 14% 25% 18% 12% 9% 9% 9% 4% - X
Transcribed Image Text:Book value Find the book value for the asset shown in the accompanying table, assuming that MACRS depreciation is being used Recovery period (years) 5 Elapsed time since purchase (years) 3 Asset A Installed cost $887,000 The remaining book value is $. (Round to the nearest dollar.) Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Recovery year 1 2 3 4 10 years 10% 18% 14% 12% 9% 8% 7% 6% 6% 6% 4% 100% 100% 100% 100% *These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year convention. 5 6 7 8 9 10 11 Totals 3 years 33% 45% Percentage by recovery year* 5 years 20% 15% 7% 32% 19% 12% 12% 5% 7 years 14% 25% 18% 12% 9% 9% 9% 4% - X
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