A piece of machinery is purchased for $92,000 with an estimatedsalvage value of $12,000, and...

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 1^st of the current year fiscal year, which ends December 31^st. 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.

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Expert Solution

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

Rahul Sunny answered 2 years ago

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