In: Finance
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
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