Depreciation In early 2019, Sosa Enterprises purchased a new machine for $11,800 to make cork stoppers for wine bottles. The machine has a 3-year recovery period and is expected to have a salvage value of $1,980. Develop a depreciation schedule for this asset using t MACRS depreciation percentages in the table 1 Complete the depreciation schedule for the asset below: (Round the percentage to the nearest integer and the depreciation to the nearest dollar.) Depreciation Schedule Year 1 Cost (1) $11,800 Percentage (2) Depreciation (1)×(2) $
Depreciation In early 2019, Sosa Enterprises purchased a new machine for $11,800 to make cork stoppers for wine bottles. The machine has a 3-year recovery period and is expected to have a salvage value of $1,980. Develop a depreciation schedule for this asset using t MACRS depreciation percentages in the table 1 Complete the depreciation schedule for the asset below: (Round the percentage to the nearest integer and the depreciation to the nearest dollar.) Depreciation Schedule Year 1 Cost (1) $11,800 Percentage (2) Depreciation (1)×(2) $
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:Rounded Depreciation Percentages by Recovery Year Using MACRS for
First Four Property Classes
Recovery year
1
2
3
4
7
8
9
10
11
Totals
3 years
33%
45%
15%
7%
Percentage by recovery year*
5 years
20%
32%
19%
12%
12%
5%
7 years
14%
25%
18%
12%
9%
9%
9%
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.
Transcribed Image Text:Depreciation In early 2019, Sosa Enterprises purchased a new machine for $11,800 to make cork stoppers for wine bottles. The machine has a 3-year recovery period and is expected to have a salvage value of $1,980. Develop a depreciation schedule for this asset using the
MACRS depreciation percentages in the table i
Complete the depreciation schedule for the asset below:
(Round the percentage to the nearest integer and the depreciation to the nearest dollar.)
Depreciation Schedule
Year
1
Cost
(1)
$11,800
Percentage
(2)
%
Depreciation
(1) × (2)
$
C
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