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Year to switch from declining balance to straight lineConsider a five-year MACRS asset purchased at $90,000. (Note that a five-year MACRS property class is depreciated over six years due to the half-year convention. The applicable salvage values would be $44,000 in year 3, $36,000 in year 5, and $2,000 in year 6.) Compute the gain or loss amount when the asset is disposed of in Year 3, Year 5, and Year 6. с c Class 3 5 7 10 15 20 Depreciation Year n 200% 200% 200% 200% 150% 150% rate 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 4 5 6 14.81 19.20 17.49 14.40 8.55 6.677 7.41 11.52 12.49 11.52 7.70 6.177 11.52 8.93* 9.22 6.93 5.713 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55" 5.90° 4.888 4567% 8 9 10 11 12 13 14 15 4.46 6.55 5.90 4.522 6.56 5.91 4.462" 6.55 5.90 4.461 3.28 5.91 4.462 5.90 4.461 5.91 4.462 5.90 4.461 5.91 4.462 16 17 18 19 20 21 2.95 4.461 4.462 4.461 4.462 4.461 2.231 Year to switch from declining balance to straight line

Year to switch from declining balance to straight lineConsider a five-year MACRS asset purchased at $90,000. (Note that a five-year MACRS property class is depreciated over six years due to the half-year convention. The applicable salvage values would be $44,000 in year 3, $36,000 in year 5, and $2,000 in year 6.) Compute the gain or loss amount when the asset is disposed of in Year 3, Year 5, and Year 6. с c Class 3 5 7 10 15 20 Depreciation Year n 200% 200% 200% 200% 150% 150% rate 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 4 5 6 14.81 19.20 17.49 14.40 8.55 6.677 7.41 11.52 12.49 11.52 7.70 6.177 11.52 8.93* 9.22 6.93 5.713 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55" 5.90° 4.888 4567% 8 9 10 11 12 13 14 15 4.46 6.55 5.90 4.522 6.56 5.91 4.462" 6.55 5.90 4.461 3.28 5.91 4.462 5.90 4.461 5.91 4.462 5.90 4.461 5.91 4.462 16 17 18 19 20 21 2.95 4.461 4.462 4.461 4.462 4.461 2.231 Year to switch from declining balance to straight line

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
Section: Chapter Questions
Problem 1PS
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Year to switch from declining balance to straight lineConsider a five-year MACRS asset purchased at $90,000. (Note that a five-year MACRS property class is depreciated over six years due to the half-year convention. The applicable salvage values would be $44,000 in year 3, $36,000 in year 5, and $2,000 in year 6.) Compute the gain or loss amount when the asset is disposed of in Year 3, Year 5, and Year 6. J c Class 3 5 7 10 15 20 Depreciation Year n 200% 200% 200% 200% 150% 150% rate 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 Year to switch from declining balance to straight line
Transcribed Image Text:Year to switch from declining balance to straight lineConsider a five-year MACRS asset purchased at $90,000. (Note that a five-year MACRS property class is depreciated over six years due to the half-year convention. The applicable salvage values would be $44,000 in year 3, $36,000 in year 5, and $2,000 in year 6.) Compute the gain or loss amount when the asset is disposed of in Year 3, Year 5, and Year 6. J c Class 3 5 7 10 15 20 Depreciation Year n 200% 200% 200% 200% 150% 150% rate 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 Year to switch from declining balance to straight line
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