DML Industries bought a new manufacturing system 3 years ago for $80,000. It is being depreciated under MACRS with a 5-year recovery period. Assume a 21% tax rate.Use the depreciation table below to calculate the book value of the machine. The table provided outlines the Depreciation Rate for different Recovery Periods, detailing how assets depreciate over time across a 3-year, 5-year, 7-year, and 10-year schedule. Here's a breakdown of the information:**Columns:**1. **Year** - Indicates each year in the recovery period.2. **3-Year** - Depreciation rate applicable to a 3-year recovery period.3. **5-Year** - Depreciation rate applicable to a 5-year recovery period.4. **7-Year** - Depreciation rate applicable to a 7-year recovery period.5. **10-Year** - Depreciation rate applicable to a 10-year recovery period.**Depreciation Rates:**- **Year 1:** - 3-Year: 33.33% - 5-Year: 20.00% - 7-Year: 14.29% - 10-Year: 10.00%- **Year 2:** - 3-Year: 44.45% - 5-Year: 32.00% - 7-Year: 24.49% - 10-Year: 18.00%- **Year 3:** - 3-Year: 14.81% - 5-Year: 19.20% - 7-Year: 17.49% - 10-Year: 14.40%- **Year 4:** - 3-Year: 7.41% - 5-Year: 11.52% - 7-Year: 12.49% - 10-Year: 11.52%- **Year 5:** - 5-Year: 11.52% - 7-Year: 8.93% - 10-Year: 9.22%- **Year 6:** - 5-Year: 5.76% - 7-Year: 8.93% - 10-Year: 7.37%- **Year 7:** - 7-Year: 8.93% - 10-Year: 6.55%- **Year 8:** - 7-Year: 4.46% - 10-Year: 6.55%- **Year

Machine Purchase price is $80,000 Tax rate is 21% Depriciation method is MACR 5 year recovery…

DML Industries bought a new manufacturing system 3 years ago for $80,000. It is being depreciated under MACRS with a 5-year recovery period. Assume a 21% tax rate. Use the depreciation table below to calculate the book value of the machine.

DML Industries bought a new manufacturing system 3 years ago for $80,000. It is being depreciated under MACRS with a 5-year recovery period. Assume a 21% tax rate. Use the depreciation table below to calculate the book value of the machine.

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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