In: Economics
Determine the MACRS (a) class, (b) annual depreciation deductions in ($) and (c) annual book values in ($) for an aircraft worth $100 million. (15 points) Please show equations that you used in excel! ill rate good
(a) MACRS asset class for Aircrafts (Airplanes) is 00.21 with GDS recovery period of 5 years.
(b) and (c) Depreciation schedule as follows.
Year | Cost ($ 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: