n early 2014, Sosa Enterprises purchased a new machine for $10,000 to make cork stoppers for wine bottles. The machine has a 3-year recovery period and is expected to have a salvage value of $2,000. Develop a depreciation schedule for this asset using the MACRS depreciation percentages in Table 4.2.
n early 2014, Sosa Enterprises purchased a new machine for $10,000 to make cork stoppers for wine bottles. The machine has a 3-year recovery period and is expected to have a salvage value of $2,000. Develop a depreciation schedule for this asset using the MACRS depreciation percentages in Table 4.2.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In early 2014, Sosa Enterprises purchased a new machine for $10,000 to make cork stoppers for wine bottles. The machine has a 3-year recovery period and is expected to have a salvage value of $2,000. Develop a
Transcribed Image Text:Rounded Depreciation Percentages by Recovery Year Using MACRS for
First Four Property Classes
Recovery year
1
2
3
4
5
6
TBS=
8
10
11
Totals
3 years
33%
45%
15%
7%
100%
Percentage by recovery year*
5 years
20%
32%
19%
12%
12%
5%
100%
7 years
14%
25%
18%
12%
9%
9%
9%
4%
100%
10 years
10%
18%
14%
12%
9%
8%
7%
6%
6%
6%
4%
100%
C
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