Year1234456789RFARENESSA1011121314151617181920GDS Recovery Rates (r) for the Six Personal Property ClassesRecovery Period (and Property Class)3-year0.33330.44450.14810.07415-year0.20000.32000.19200.11520.11520.05767-year0.14290.24490.17490.12490.08930.08920.08930.044610-year0.10000.18000.14400.11520.09220.07370.06550.06550.06560.06550.032815-year0.05000.09500.08550.07700.06930.06230.05900.05900.05910.05900.05910.05900.05910.05900.05910.029520-year0.03750.07220.06680.06180.05710.05280.04890.04520.04470.04470.04460.04460.04460.04460.04460.04460.04460.04460.04460.0446Asset Class00.1100.1200.2200.2300.24100.24200.2601.110.013.213.315.022.324.428.030.132.234.036.037.11372MACRS Class Lives and Recovery PeriodsDescriptions of AssetsOffice furniture and equipmentInformation systems, including computersAutomobiles, taxisBusesLight general purpose trucksHeavy general purpose trucksTractor units for use over the roadAgricultureMiningProduction of petroleum and natural gasPetroleum refiningConstructionManufacture of carpetsManufacture of wood products and furnitureManufacture of chemicals and allied productsManufacture of rubber productsManufacture of cementManufacture of fabricated metal productsManufacture of electronic components, products, and systemsManufacture of motor vehiclesManufasha akaacaamana menduntaClass Life10641010101416693941420124669.512in*Recovery PeriodsGDSADS1055377777C555555715757710101014166105659142095612649.51210 During its current tax year (year one), a pharmaceutical company purchased a mixing tank that had a fair market price of $112,000. It replaced an older, smallermixing tank that had a BV of $15,000. Because a special promotion was underway, the old tank was used as a trade-in for the new one, and the cash price (includingbe delivery and installation) was set at $95,000. The MACRS class life for the new mixing tank is 9.5 years.ati..Click the icon to view the partial listing of depreciable assets used in business.Click the icon to view the GDS Recovery Rates (rk).a. Under the GDS, what is the depreciation deduction in year three?The depreciation deduction in year three is $(...)(Round to the nearest dollar.)

Calculate Cost Basis:- The cost basis of tank is calculated as below: Cost Basis of Tank = Cash…

During its current tax year (year one), a pharmaceutical company purchased a mixing tank that had a fair market price of $112,000. It replaced an older, smaller mixing tank that had a BV of $15,000. Because a special promotion was underway, the old tank was used as a trade-in for the new one, and the cash price (including delivery and installation) was set at $95,000. The MACRS class life for the new mixing tank is 9.5 years. Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (rk). a. Under the GDS, what is the depreciation deduction in year three? The depreciation deduction in year three is $. (Round to the nearest dollar.)

During its current tax year (year one), a pharmaceutical company purchased a mixing tank that had a fair market price of $112,000. It replaced an older, smaller mixing tank that had a BV of $15,000. Because a special promotion was underway, the old tank was used as a trade-in for the new one, and the cash price (including delivery and installation) was set at $95,000. The MACRS class life for the new mixing tank is 9.5 years. Click the icon to view the partial listing of depreciable assets used in business. Click the icon to view the GDS Recovery Rates (rk). a. Under the GDS, what is the depreciation deduction in year three? The depreciation deduction in year three is $. (Round to the nearest dollar.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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