In: Economics
A piece of machinery is purchased for $92,000 with an estimated salvage value of $12,000, and estimated useful life of 5 years. It was placed in service May 1st of the current year fiscal year, which ends December 31st. The asset has a 7-year class life under MACRS. Determine the depreciation over the machinery’s useful life. How is it done in excel and explain how you get percentages.
Given that
It is given that a piece of machinery was purchased for a price of $ 92,000.00 and has an initial useful life of five years it was positioned for repair on May 1st of the existing fiscal year. The asset is falling into a seven-year MACRS product category.
Compute the depreciation as follows:
The computed depreciation is shown below