Determine the MACRS (a) class, (b) annual depreciation deductions in ($) and (c) annual book values...

Determine the MACRS (a) class, (b) annual depreciation deductions in ($) and (c) annual book values in ($) for an aircraft worth $100 million. (15 points) Please show equations that you used in excel! ill rate good

Expert Solution

(a) MACRS asset class for Aircrafts (Airplanes) is 00.21 with GDS recovery period of 5 years.

(b) and (c) Depreciation schedule as follows.

Year	Cost ($ Million)	Depreciation Rate (%)	Annual Depreciation ($ Million)	Book Value ($ Million)
1	100	20	20	80
2	100	32	32	48
3	100	19.2	19.2	28.8
4	100	11.52	11.52	17.28
5	100	11.52	11.52	5.76
6	100	5.76	5.76	0

Screenshot of formula:

Rahul Sunny answered 10 months ago

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