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

Question

Yareli Patrick

Business

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

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Maddison Moore · Answer 1

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