Please show me all the steps, I need to understand the process. Problem 7 (10 po

Question

Please show me all the steps, I need to understand the process.

Problem 7 (10 points) A new machine tool is being purchased for $250,000 and is expected to have a $62,500 salvage value at the end of its 4-year useful life. Determine the depreciation for the machine tool's depreciable life using i) the straight-line method; ii) the 200% declining balance method, and in the MACRS method (GDS 3 year recovery) IRDY San inli 6-11.imHkilt tell llD rliimile: 1881 imme Heilil ol kil MJR§ ibile ili MACRS Method 1

Explanation / Answer

Straight Line Method

Declining Balance Method

*No depreciation is provided for 3 and 4 the years as it will reduce the the book value than the salvage value

MACRS Method (property class - 3 year property)

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Straight Line Method Opening Value Depreciation EOY 1 250000.00 46875.00 203125.00 2 203125.00 46875.00 156250.00 3 156250.00 46875.00 109375.00 4 109375.00 46875.00 62500.00

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