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

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

jeff jeffy answered 8 months ago

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