Find the depreciation for the fourth year using MACRS cost-recovery rates for the property placed in service at midyear. The property is a 3-year property and was purchased for $90,981. MACRS Table Depreciation rate for recovery period Year 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year 1 33.33 % 20.00 % 14.29 % 10.00 % 5.00 % 3.750 % 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52 12.49 11.52 7.70 6.177 5 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 8 4.46 6.55 5.90 4.522 9 6.56 5.91 4.462 10 6.55 5.90 4.461 11 3.28 5.91 4.462 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231 The depreciation is = (Round to the nearest cent as needed.)
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Find the
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Depreciation rate for recovery period
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Year
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3-Year
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5-Year
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7-Year
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10-Year
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15-Year
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20-Year
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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1
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33.33
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%
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20.00
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%
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14.29
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%
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10.00
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%
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5.00
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%
|
3.750
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%
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2
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44.45
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|
32.00
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|
24.49
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|
18.00
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|
9.50
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7.219
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3
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14.81
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19.20
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17.49
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14.40
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|
8.55
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|
6.677
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|
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4
|
|
7.41
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11.52
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12.49
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11.52
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|
7.70
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|
6.177
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5
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|
|
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11.52
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|
8.93
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|
9.22
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|
6.93
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|
5.713
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|
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6
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|
|
|
5.76
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|
8.92
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|
7.37
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|
6.23
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|
5.285
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7
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|
|
|
|
|
8.93
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|
6.55
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|
5.90
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|
4.888
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8
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|
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|
|
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4.46
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6.55
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5.90
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|
4.522
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|
|
9
|
|
|
|
|
|
|
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6.56
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|
5.91
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|
4.462
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|
|
10
|
|
|
|
|
|
|
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6.55
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5.90
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|
4.461
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|
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11
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|
|
|
|
|
|
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3.28
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|
5.91
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|
4.462
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|
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12
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|
|
|
|
|
|
|
|
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5.90
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|
4.461
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|
|
13
|
|
|
|
|
|
|
|
|
|
5.91
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|
4.462
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|
|
14
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|
|
|
|
|
|
|
|
|
5.90
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|
4.461
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|
|
15
|
|
|
|
|
|
|
|
|
|
5.91
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|
4.462
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|
|
16
|
|
|
|
|
|
|
|
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2.95
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4.461
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17
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|
|
|
|
|
|
|
|
|
|
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4.462
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|
|
18
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|
|
|
|
|
|
|
|
|
|
|
4.461
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|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
4.462
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|
|
20
|
|
|
|
|
|
|
|
|
|
|
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4.461
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|
|
21
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|
|
|
|
|
|
|
|
|
|
|
2.231
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The depreciation is =
(Round to the nearest cent as needed.)
Depreciation = Cost x Depreciation Rate for the year
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