A piece of newly purchased industrial equipment costs $970,000 and is classified

Question

A piece of newly purchased industrial equipment costs $970,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule is shown in Table 10.7. Calculate the annual depreciation allowances and end-of-the-year book values for this equipment. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places. (e.g., 32.16)) Year Beginning Book Value Depreciation Ending book Value 1 $ $ $ 2 $ $ $ 3 $ $ $ 4 $ $ $ 5 $ $ $ 6 $ $ $ 7 $ $ $ 8 $ $ $

Explanation / Answer

Industrial Equipment Depreciation Schedule (Amount in $) Year Book Value Depreciation Rate Depreciation Expense Accumulated Depreciation Ending Book Value 1 970000.00 14.29% 138571.00 138571.00 831429.00 2 970000.00 24.49% 237551.00 376122.00 593878.00 3 970000.00 17.49% 169679.00 545802.00 424198.00 4 970000.00 12.50% 121200.00 667001.00 302999.00 5 970000.00 8.93% 86571.00 753572.00 216428.00 6 970000.00 8.93% 86571.00 840143.00 129857.00 7 970000.00 8.93% 86571.00 926714.00 43286.00 8 970000.00 4.46% 43286.00 970000.00 0.00

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