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Use MACRS to compute the depreciation schedule for office furniture purchased for $80,000 (use the 7...

Use MACRS to compute the depreciation schedule for office furniture purchased for $80,000 (use the 7 yr depreciation schedule). Assume salvage value is $10,000

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Expert Solution

Depreciation schedule as per MACRS :

Year Depreciation rate Depreciation
1 14.29%                 11,432.00
2 24.49%                 19,592.00
3 17.49%                 13,992.00
4 12.49%                    9,992.00
5 8.93%                    7,144.00
6 8.92%                    7,136.00
7 8.93%                    7,144.00
8 4.46%                    3,568.00

In MACRS depreciation, salvage value is not reduced from original cost


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