Will Do, Inc. just purchased some equipment at a cost of $650,000. What is the proper...

Will Do, Inc. just purchased some equipment at a cost of $650,000. What is the proper methodology for computing the depreciation expense for year 3 if the equipment is classified as 5-year property for MACRS?
MACRS 5-year property
Year Rate
1 20.00%
2 32.00%
3 19.20%
4 11.52%
5 11.52%
6 5.76%

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Expert Solution

Depreciation expense for year 3=Cost*Depreciation rate for year 3

=650,000*19.2%

which is equal to

=$124800

jeff jeffy answered 2 years ago

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