please answer it right this is the fifth time I post the same Q thank you Blackw
ID: 2584504 • Letter: P
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please answer it right this is the fifth time I post the same Q thank you
Blackwater Spring and Metal utilizes the same computerized spring-forming machinery in its U.S. and Malaysian plants. The first cost was $750,000 with S = $150,000 after n = 10 years. MACRS (Modified Accelerated Cost Recovery System) depreciation with n = 5 years is applied in the United States, and standard SL depreciation with n = 7 years is used by the Malaysian facility.
If the equipment is sold after 5 years for $100,000, calculate the over-and underdepreciation amounts for each method.
The overdepreciation amount is $ 706800 706800 Incorrect .
The underdepreciation amount is $ 214286 214286 Incorrect .
Depreciation Rate() for Each MACRS Recovery Period in Years 3 n=5 n=7 14.29 24.49 17.49 12.49 8.93 n 20 3.75 7.22 6.68 6.18 5.71 20.00 44.45 14.81 7.41 19.20 11.52 11.52 10.00 18.00 14.40 11.52 9.22 5.00 9.50 8.55 7.70 6.93 5.76 8.92 8.93 4.46 7.37 6.55 6.55 6.23 5.90 5.90 5.91 5.90 5.29 4.89 4.52 4.46 4.46 10 6.55 4.46 4.46 4.46 4.46 4.46 3.28 5.91 5.90 5.91 5.90 5.91 12 15 16 17-20 21 4.46 4.46 2.95Explanation / Answer
Under depreciation under Macr =750000*22.31%-100000
=67325
Under depreciation under SL method =600000/7 *2 +150000-100000=221429
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