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The Peabody Company has 7 year MACRS property with an original cost basis of $1,700,000. Calculate the ending book value at Year 4.   Year MACRS% Depreciation Ending book value 1 14.29 % .1429 × $ 1,700,000 = $ 242,930   $ 1,457,070   2 24.49   .2449 ×   1,700,000 =   416,330   $ 1,040,740   3 17.49   .1749 ×   1,700,000 =   297,330     743,410   4 12.49   ?   ?

The Peabody Company has 7 year MACRS property with an original cost basis of $1,700,000. Calculate the ending book value at Year 4.   Year MACRS% Depreciation Ending book value 1 14.29 % .1429 × $ 1,700,000 = $ 242,930   $ 1,457,070   2 24.49   .2449 ×   1,700,000 =   416,330   $ 1,040,740   3 17.49   .1749 ×   1,700,000 =   297,330     743,410   4 12.49   ?   ?

Essentials Of Investments
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
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The Peabody Company has 7 year MACRS property with an original cost basis of $1,700,000. Calculate the ending book value at Year 4.

 

Year MACRS% Depreciation Ending book value
1 14.29 % .1429 × $ 1,700,000 = $ 242,930   $ 1,457,070  
2 24.49   .2449 ×   1,700,000 =   416,330   $ 1,040,740  
3 17.49   .1749 ×   1,700,000 =   297,330     743,410  
4 12.49   ?   ?  
 

 

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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