Ask Question
17 September, 05:38

Lew just purchased $67,600 of equipment that is classified as 5-year MACRS property. The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. What will be the book value of this equipment at the end of four years if he ignores bonus depreciation

+4
Answers (1)
  1. 17 September, 05:53
    0
    The book value of this equipment at the end of four years if he ignores bonus depreciation $26,290.

    Explanation:

    Cost of property = $67,600

    Balance Depreciation

    Year 1 67,600 13520

    Year 2 54,080 17,306

    Year 3 36,774 7,061

    Year 4 29,713 3,423

    Book vaue at the end of year 4 = 29,713 - 3423 = $26,290
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Lew just purchased $67,600 of equipment that is classified as 5-year MACRS property. The MACRS rates are 20 percent, 32 percent, 19.2 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers